Oil Prices Rise as Middle East Tensions Intensify

Oil prices firmed on Thursday after an early drop, as traders weighed a worsening conflict in the Middle East against the risk of broader disruption to crude shipments. The session was choppy, but the market finished with gains as headlines from the region kept supply concerns in focus.

Supply risks keep traders on edge

The latest escalation between Saudi Arabia and Houthi forces in Yemen added to worries about energy flows. Fighting has intensified alongside airstrikes and counterattacks, including an incident in which at least 23 people were reported killed at a prison in Yemen. That backdrop has heightened concern that oil infrastructure or transport routes could be affected.

Brent crude futures climbed nearly 1% to $102.18 a barrel, near their highest level since May. West Texas Intermediate rose 1.2% to $97.22 a barrel. The move reflected renewed anxiety over shipments passing through the Strait of Hormuz, one of the world’s most important energy chokepoints.

Strait of Hormuz remains the key market focus

Market attention is also centered on Iran’s response to recent events in the waterway. Iran’s Islamic Revolutionary Guard Corps said its naval forces attacked two U.S. vessels and eight oil tankers near the Strait of Hormuz after the U.S. sank five Iranian oil tankers. The IRGC also warned that it would escalate if further attacks occurred.

The Strait of Hormuz is crucial because a large share of seaborne crude moves through it. Any threat to traffic there can quickly feed into global oil pricing, even when the physical flow of barrels has not yet been interrupted. That is why traders reacted to the latest military exchanges with a higher risk premium.

U.S. President Donald Trump said oil prices spiking because of the Iran conflict are unlikely to ease before the U.S. midterm elections. He also said Washington is not seeking to restart negotiations with Tehran and argued that Iran cannot continue indefinitely. Separately, he said recent U.S. strikes in the Strait of Hormuz had incapacitated nine Iranian tankers and that more attacks could follow.

This article is not investment advice and recommends no asset, level or direction; a single session's move is not evidence of a trend. For background see Markets, Bear Market, BIST 100, and for terms the finance glossary.