WTI and Brent surge over 2.7% as Iran threatens restrictions on key oil shipping lanes, lifting geopolitical risk premiums.
Crude oil prices rose sharply Thursday amid escalating tensions in the Middle East. WTI settled at $77.29, up $2.07, while Brent climbed $3.04 to $82.49, reflecting heightened concerns over potential disruptions in the Strait of Hormuz.
The gains followed reports that Iran may impose restrictions on shipping, including barring U.S. and Israeli-linked vessels from the critical waterway. Though no actual disruptions have occurred, the rhetoric alone stoked fears over supply security, as roughly 20% of global oil consumption transits the strait.
Traders remain on edge as diplomatic efforts in the region show mixed signals. The market’s sensitivity to geopolitical headlines suggests the risk premium will persist until shipping lane security is clarified.