The rise in prices on Thursday was driven by growing concerns over oil and LNG supply in the Middle East as the conflict between the US, Israel and Iran intensified.
International benchmark Brent crude traded at $82.84 per barrel at 9.40 a.m. local time (0640 GMT), up 2.5% from the previous close of $80.76.
US benchmark West Texas Intermediate (WTI) increased 2.6% to $76.53 per barrel, compared with $74.59 in the previous session.
Market worries persist particularly over the fate of shipments through the Strait of Hormuz, a route that carries roughly one-fifth of global oil and LNG supply.
US Treasury Secretary Scott Bessent said the Washington administration would announce new measures that could directly affect global trade and energy markets.
Bessent stated that a series of measures would be implemented to ensure the continuation of oil shipments in the Persian Gulf. He emphasized that geopolitical tensions in the region would not be allowed to threaten energy corridors and noted that Washington stands ready regarding the Strait of Hormuz, a critical chokepoint for global oil flows.
Bessent also noted that the first concrete step to prevent disruptions in maritime traffic was taken yesterday. The US International Development Finance Corporation (DFC) has begun providing "reasonably priced" political risk insurance for crude oil tankers and cargo vessels operating in the Persian Gulf.
"If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible. No matter what, the United States will ensure the free flow of energy to the world," Trump said.
Meanwhile, international credit rating agency Fitch Ratings said that any effective closure of the Strait of Hormuz, the main driver behind recent oil price increases following attacks on Iran, would likely be temporary due to the strait's critical economic role. Fitch noted that such a scenario, combined with the current surplus in global oil supply, would likely limit further increases in oil prices.
However, escalating tensions, including Iran's missile attacks on Israel and continued US military actions, are sustaining upward pressure on prices by fueling supply concerns.
- Stock build pressures prices
Meanwhile, an increase in US commercial crude oil inventories is weighing on prices by reinforcing perceptions of weak demand.
The US Energy Information Administration (EIA) reported that commercial crude oil inventories rose by about 3.5 million barrels last week to 439.3 million barrels. Market expectations had pointed to an increase of around 3 million barrels.
During the same period, US gasoline inventories fell by about 1.7 million barrels to 253.1 million barrels.
US daily crude oil production also declined by 6,000 barrels in the week of Feb. 21–27 to 13.69 million barrels.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
