Oil prices rose nearly 1% in early trade on Wednesday, extending the previous session's surge, as concerns over supply disruption.
Oil prices rose on Tuesday as renewed military tensions between the United States and Iran revived concerns that the conflict could continue to disrupt crude supplies from the Middle East.
Oil prices surged more than 2% on Monday after a fresh exchange of US and Iranian attacks around the Strait of Hormuz renewed the risk of disruption to crude shipments through the key oil chokepoint.
Oil prices fell sharply on Monday after US President Donald Trump suspended plans for military strikes against Iran and announced that negotiations with Tehran would resume, raising hopes of reducing the risk of disruptions to global crude supplies.
The US Energy Information Administration has sharply raised its forecast for oil prices this year, warning that severe restrictions on shipping through the Strait of Hormuz are likely to persist through August despite President Donald Trump's repeated assertions that the strategic waterway is open.
Oil prices climbed sharply on Wednesday as renewed military clashes between the United States, Saudi Arabia and Iran kept traders on edge about supply disruptions, even as Oman unveiled a Gulf-backed proposal aimed at safeguarding shipping through the Strait of Hormuz.
Oil prices extended their sharp decline in early Asian trading on Tuesday as markets welcomed a fourth consecutive night without military strikes between the United States and Iran, easing immediate fears of a wider disruption to Middle East energy supplies.
Oil prices rose more than 4% at settlement on Friday, hitting their highest levels in over a month amid the ongoing Middle East conflict. Brent Crude futures surged by $3.87 (4.59%) to settle at $88.10 a barrel, while US West Texas Intermediate futures surged by 4.48% to $82.49.
Oil prices settled lower on Friday after the latest round of US-Iran fighting as traders grew hopeful that shipping would eventually resume in the Strait of Hormuz, but prices finished with sharp weekly gains. Brent crude futures fell by 29 cents to close at $76.01 a barrel.
GlobalData warns that disruptions in key Middle East shipping routes are tightening energy supplies and raising oil prices, with every sustained $10-per-barrel increase potentially reducing annual GDP growth in major energy-importing economies by 0.1–0.5 percentage points.
