Crude oil prices advanced on Thursday as disruptions in the Strait of Hormuz and stalled negotiations between the United States and Iran tightened global supply conditions, reinforcing bullish sentiment across energy markets.
According to Reuters, Brent crude oil rose by about $1.47 to trade around $103.38 per barrel, while U.S. West Texas Intermediate (WTI) gained $1.40 to approximately $94.36 per barrel.
The latest rally reflects heightened geopolitical risk in the Middle East, where tensions between the United States and Iran continue to disrupt maritime flows through the Strait of Hormuz, a critical route that handles roughly 20 percent of global oil shipments.
Shipping disruptions intensified after Iran seized vessels in the waterway, while both countries maintained restrictions on trade routes, raising concerns over prolonged supply constraints.
The lack of progress in ceasefire negotiations has further reduced expectations of near-term supply normalization.
Market fundamentals also provided support as data showing significant declines in U.S. gasoline and distillate inventories signaled strong underlying demand, adding upward pressure on prices despite a surprise increase in crude stockpiles.
However, the broader demand outlook remains uncertain. S&P Global has cut its 2026 global oil demand forecast by 700,000 barrels per day, citing the economic impact of the ongoing conflict and elevated energy costs.
The surge in crude prices above $100 per barrel is already feeding into global inflation expectations, influencing monetary policy outlooks and weighing on financial markets.
Analysts warn that prolonged disruption in the Gulf could sustain upward pressure on prices while increasing volatility across asset classes.
