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Global crude oil markets moved higher on Thursday as concerns grew over supply disruptions in West Asia, with uncertainty surrounding a temporary ceasefire between the United States and Iran continuing to unsettle traders.
Benchmark Brent Crude rose by over 3 per cent to approach $98 per barrel in early trade, while West Texas Intermediate gained more than 4 per cent, reflecting renewed worries about the availability of crude supplies.
The rebound comes a day after prices had dropped sharply, driven by optimism that easing tensions could restore normal shipping activity through the Strait of Hormuz. That expectation has, however, weakened with the key oil transit route still facing restrictions.
The Strait of Hormuz, a vital corridor for energy exports from major producers such as Iraq, Saudi Arabia, Kuwait and Qatar, remains central to the evolving situation.
Market participants are closely watching developments, as any prolonged disruption could significantly affect global supply chains.
Tensions in the region have intensified following reports of Israeli action against Hezbollah in Lebanon, alongside incidents involving missile and drone activity in countries including Kuwait, Bahrain and the United Arab Emirates.
Fresh reports also indicate that Iran has once again restricted access to the Strait, adding to uncertainty.
Shipping companies have reportedly held back from resuming full operations, seeking clearer assurances on security conditions before navigating the route.
Iranian authorities, according to media reports, have issued guidance for vessels, including alternative navigation paths and safety measures.
Energy infrastructure in the region remains vulnerable, with reports of strikes affecting facilities in neighbouring countries, including a pipeline in Saudi Arabia designed to bypass the Strait.
US Signals Continued Presence
US President Donald Trump has stated that US military assets will continue to operate in and around the region, signalling an ongoing strategic presence.
Financial markets reflected the cautious mood. India’s key indices, the BSE Sensex and Nifty 50, traded lower by around 0.7 per cent each, while major Asian markets, including the Nikkei, Hang Seng and KOSPI, also remained under pressure.
Also Read: Gold Prices Remain Below Record High Despite Global Tensions And Market Pressures
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