- Oil prices held gains amid Middle East tensions and shrinking US crude stocks
- Brent crude near $90 after an 8% surge, WTI just below $84 per barrel
- US President Trump vowed new military action against Iran after attacks
Oil prices held on to most of the previous session's gains on Thursday as escalating geopolitical tensions in the Middle East and shrinking US crude inventories reinforced concerns over global energy supplies.
Global benchmark Brent crude traded near $90 a barrel, after surging almost 8% in the previous session, its biggest daily gain in more than two weeks. West Texas Intermediate (WTI) hovered just below $84 a barrel, supported by renewed fears that the conflict between the US and Iran could further disrupt energy flows.
Sentiment turned cautious after US President Donald Trump vowed fresh military action against Iran following an attack on US forces in Jordan. According to media reports, the conflict could persist for months as negotiations over the Strait of Hormuz remain deadlocked and prospects of a ceasefire appear increasingly uncertain.
The Strait of Hormuz, through which roughly a fifth of the world's oil supply typically passes, remains at the centre of the standoff. Iran has continued to assert control over the strategic waterway, while Saudi Arabia has diverted some exports through its East-West pipeline to the Red Sea. However, even that alternative route has come under pressure as Yemen's Houthi rebels threaten to disrupt shipping.
Oil also found support from fresh inventory data in the United States. Commercial crude stockpiles fell to their lowest level since 2018, signalling tighter physical supplies, while holdings in the Strategic Petroleum Reserve (SPR) declined for an 18th straight week to their lowest level since 1983.
The latest developments have added another layer of uncertainty to energy markets, which have experienced sharp swings this month as traders navigated alternating periods of diplomatic optimism and renewed military escalation between Washington and Tehran.
Meanwhile, geopolitical risks extended beyond the Gulf region after two liquefied natural gas vessels caught fire following projectile strikes at Egypt's Mediterranean port of Damietta, raising fresh concerns about maritime security and global energy logistics.
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