WEB DESK: Oil prices continued to climb on Thursday as markets grew increasingly concerned that crude supplies from the Middle East will stay restricted due to the ongoing deadlock in efforts to resolve the U.S.–Iran conflict.
Brent crude for June delivery rose by $1.91 (about 1.6%) to reach $119.94 per barrel, extending a strong rally from the previous session. The contract has now gained for nine consecutive sessions. Meanwhile, the more actively traded July Brent contract also moved higher, up 94 cents to $111.38 per barrel after a solid jump a day earlier.
U.S. West Texas Intermediate (WTI) crude for June delivery increased by 63 cents, or roughly 0.6%, to $107.51 per barrel, continuing its upward trend after posting a 7% surge in the prior session.
The price momentum is being driven largely by fears of prolonged supply disruptions. A reported discussion between U.S. President Donald Trump and major oil companies about managing the fallout from a potential long-term blockade of Iran’s ports has heightened concerns that oil flows could remain constrained for months.
Analysts note that chances of a quick resolution to the conflict remain slim, particularly with no progress toward reopening the Strait of Hormuz—a critical route for global oil shipments. Since late February, Iran has significantly restricted maritime traffic through the strait, allowing only limited domestic movement, while U.S. actions have further tightened the situation by targeting Iranian shipping.
The conflict has already caused severe disruptions, with experts calling it one of the largest shocks to global energy supply in recent history.
On the production side, the OPEC+ alliance is expected to consider a modest output increase of around 188,000 barrels per day at its upcoming meeting. However, this may offer limited relief to the market.
Adding another layer of uncertainty, the United Arab Emirates is set to exit OPEC starting May 1. While this move could eventually allow the country to boost production, analysts believe any meaningful increase will take time, especially given ongoing regional instability and damaged infrastructure.
Overall, with supply risks still elevated and no immediate diplomatic breakthrough in sight, oil markets are likely to remain volatile in the near term.
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