Global oil prices climbed on Thursday as escalating tensions in the US–Iran conflict intensified concerns about disruptions to vital Middle East energy supplies. The prolonged disruption of shipping through the Strait of Hormuz has heightened fears of tighter oil and gas flows from the region.
Brent crude was trading up by $1.67, or about 2.05 percent, at $83.07 per barrel by 0141 GMT. Meanwhile, US West Texas Intermediate (WTI) crude rose $1.94, or 2.60 percent, to $76.60 per barrel.
The conflict expanded further after a US strike reportedly hit an Iranian warship off the coast of Sri Lanka. At the same time, US Senate Republicans backed President Donald Trump’s military campaign against Iran, voting against a bipartisan resolution that sought to halt the air war and require Congressional approval for continued hostilities.
Supply disruptions are already beginning to emerge across the region. Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries (OPEC), has reduced output by nearly 1.5 million barrels per day due to storage limitations and restricted export routes, according to officials cited by Reuters.
Qatar, the Gulf’s largest liquefied natural gas (LNG) producer, has also declared force majeure on gas exports. Industry sources indicate that restoring normal production levels could take at least a month.
Shipping through the Strait of Hormuz—one of the world’s most critical energy corridors—has slowed dramatically for the fifth consecutive day amid the conflict and Iran’s retaliatory actions. Nearly a fifth of global energy consumption typically passes through this narrow passage, making any disruption a major concern for global markets.
Meanwhile, Britain’s maritime trade operations agency reported that the crew of a tanker anchored about 30 nautical miles southeast of Kuwait’s Mubarak Al Kabeer port observed and heard a large explosion, after which a small vessel was seen leaving the area.
According to analysts at J.P. Morgan, Iran has largely avoided directly targeting major energy infrastructure so far, but shipping risks in the region remain extremely high. The bank estimates that roughly 329 oil tankers are currently stranded in the Gulf amid the escalating tensions.
J.P. Morgan also noted that storage capacity in Gulf Cooperation Council (GCC) countries and prevailing energy prices could limit the duration of the current US campaign. The GCC includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.
Most oil fields in the region could resume operations within days if conditions stabilise, with full production capacity typically restored within two to three weeks. However, analysts say the main challenge currently lies not in geology but in logistics, as disruptions to shipping routes and export infrastructure continue to constrain supply.
