Oil prices jump as Middle East risks mount

Summary

• Oil prices moved higher on Thursday as concerns over disruptions to crude supplies increased amid a rise in attacks on commercial vessels in the Gulf and the Strait of Hormuz.
• The Strait of Hormuz is a critical energy route, with shipments through the waterway accounting for around one-fifth of global oil and fuel supplies before the conflict escalated.
• With Middle East shipping risks, US weather disruptions and declining inventories affecting the market simultaneously, oil prices remain sensitive to further developments in global supply and transportation.

AI Generated Summary

Oil prices moved higher on Thursday as concerns over disruptions to crude supplies increased amid a rise in attacks on commercial vessels in the Gulf and the Strait of Hormuz.

Brent crude futures gained $2.28, or 2.28%, to reach $102.28 a barrel, while US West Texas Intermediate crude rose $1.66, or 1.88%, to $89.94 by 4:27am GMT.

The latest increase came as markets continued to assess the risks surrounding oil shipments from the Middle East. The Strait of Hormuz is a critical energy route, with shipments through the waterway accounting for around one-fifth of global oil and fuel supplies before the conflict escalated.