Rising Oil Prices Amid Concerns Over Middle Eastern Supply Issues
Oil prices surged this Thursday as investors expressed concerns that supplies from the Middle East may not fully return. These worries arise in the context of skepticism surrounding the sustainability of a two-week ceasefire between the United States and Iran, while restrictions affecting the strategic Strait of Hormuz remain in place.
Market Movement
As a result, the futures contract for Brent crude increased by $2.60, representing a 2.74% rise, reaching $97.35 per barrel. Meanwhile, West Texas Intermediate (WTI) crude climbed by $3.02, or 3.2%, to $97.43 per barrel.
Recent Context
In the previous session, both major oil benchmarks had fallen below the $100 per barrel mark. WTI experienced its largest drop since April 2020, spurred by expectations that the ceasefire would facilitate the reopening of the Strait of Hormuz.
