LONDON — Global oil markets rose on Thursday amid ongoing uncertainty in the Middle East, with Brent crude climbing above $107 per barrel as traders monitored developments in regional tensions, market participants said.
Oil prices have shown volatility in recent weeks following disruptions linked to conflict in the region, including attacks on energy infrastructure and shipping challenges in the Strait of Hormuz. Brent crude futures rose as much as 1.77% earlier in the week to around $111 before easing, according to trading data.
The International Energy Agency and other analysts have noted significant supply disruptions, with estimates of global oil supply reductions in the range of millions of barrels per day since earlier escalations. Details of the exact current impact remained fluid on Thursday.
“More than ten weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace,” the IEA said in a recent report.
The Strait of Hormuz, a critical chokepoint for global oil trade, has faced repeated disruptions, contributing to price swings. Brent crude has traded well above levels seen at the start of the year, with analysts attributing gains to geopolitical risk premiums.
U.S. West Texas Intermediate crude has followed a similar pattern, with recent settlements reported around the $100 to $102 range in mid-May trading sessions.
The World Bank projected in April that energy prices could surge substantially in 2026 due to the conflict, with Brent potentially averaging significantly higher than 2025 levels under certain scenarios. However, forecasts assume a gradual easing of the most acute disruptions.
Major producers and consumers have been assessing alternatives, including increased output from other regions, though full replacement of Middle East volumes has proven challenging in the short term. No immediate resolution to the underlying tensions was reported on Thursday.
Market participants continue to watch for any diplomatic developments or changes in shipping activity through key routes. Further updates on oil inventories and production adjustments from OPEC+ members are expected in coming days.
