Global Oil Prices Jump Up to 8% Amid Widening Middle East Conflict
Global oil prices surged at the close of trading on Thursday as concerns about global supply disruptions intensified due to the widening conflict in the Middle East. According to Reuters, West Texas Intermediate (WTI) crude futures rose by $6.35, or 8.51%, to $81.01 per barrel, the highest level since July 2024. Meanwhile, Brent crude futures closed up $4.01, or 4.93%, at $85.41 per barrel, extending a five‑day rally in oil prices.
The advance came amid growing market concerns over supply disruptions as the conflict in the Middle East widens, including disruption to shipping through the Hormuz Strait.
A senior White House official said the U.S. Treasury Department was considering taking steps in the oil market as part of efforts to curb energy price increases.
“I’m not worried about higher gasoline prices in the U.S. because military operations are my priority at the moment,” Trump told Reuters in an exclusive interview.
Trump also said that the U.S. wants to be involved in determining Iran’s next leader after the conflict.
Energy supply disruptions have become more evident as several producing countries halt output due to impeded energy shipments through the Hormuz Strait. Iraq was reported to have halted production by almost 1.5 million barrels per day due to storage capacity being exhausted, caused by the lack of tankers able to move the oil out of the country.
Analysts expect Kuwait and the United Arab Emirates to potentially take similar steps if their storage capacity becomes tighter.
John Kilduff of Again Capital said that the absence of ships moving in the Hormuz Strait is likely to keep prices rising. He added that production recovery could take time as facilities cannot immediately return to full capacity after shutdown. “There is no movement in the Hormuz Strait, so prices are likely to continue rising. Moreover, if countries must halt production, then the recovery of production cannot be immediate; this will be a problem for the meantime,” Kilduff said.