Surge in Oil Prices Amid Concerns Over Middle East Supply Issues

Oil prices rose on Thursday as investors feared that supplies from the Middle East might not fully recover. These concerns come amid doubts over the sustainability of a two-week ceasefire between the United States and Iran, alongside ongoing restrictions in the strategically important Strait of Hormuz.

Price Developments

Thus, Brent crude futures increased by $2.60, or 2.74%, reaching $97.35 a barrel. Meanwhile, U.S. WTI crude gained $3.02, or 3.2%, rising to $97.43 a barrel.

Recent Context

In the previous session, both oil benchmarks fell below the $100 per barrel mark. WTI recorded its largest drop since April 2020 amid expectations that the ceasefire would allow for the reopening of the Strait of Hormuz.