Oil Prices Surge Past $84 as Middle East Tensions Disrupt Oil Flows

Global oil prices climbed sharply on Thursday as escalating tensions between the United States and Iran raised fears of prolonged disruptions to energy supplies from the Middle East, particularly as shipping through the strategic Strait of Hormuz remains largely halted.

Brent crude futures rose 3.7% to $84.41 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 4% to $77.59 per barrel in Thursday trading, as markets reacted to mounting geopolitical risks and tightening supply conditions.

Latest Oil Prices:

WTI Crude • 78.95 -2.06 -2.54%

Brent Crude • 85.41 +4.01 +4.93%

Murban Crude • 94.51 +13.02 +15.98%

Louisiana Light • 78.58 +10.00 +14.58%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 82.87 +13.58 +19.60%

Mars US • 69.53 -0.85 -1.21%

Gasoline • 2.624 -0.047 -1.77%

Natural Gas • 2.974 -0.029 -0.97%

The latest surge in prices comes amid growing concern that the Strait of Hormuz, a vital shipping lane responsible for transporting nearly one-fifth of the world’s energy consumption, could remain closed for an extended period as hostilities continue.

The conflict widened on Wednesday after a U.S. strike reportedly targeted an Iranian warship off the coast of Sri Lanka. The operation forms part of a broader military campaign ordered by U.S. President Donald Trump against Iran.

Republican lawmakers in the United States Senate voiced support for the military action, while a separate resolution seeking to halt the war and require congressional authorization before engaging in combat operations failed to pass.

The geopolitical tensions are compounding supply challenges across the region.

Officials told Reuters that Iraq, the second-largest crude producer in OPEC, has reduced production by about 1.5 million barrels per day due to limited storage capacity and the suspension of a key export route.

Meanwhile, Qatar, the Gulf’s largest producer of liquefied natural gas, declared force majeure on LNG exports, warning that a return to normal production levels could take at least a month, according to sources familiar with the matter.

Shipping activity through the Strait of Hormuz has come to a near standstill for the fifth consecutive day, leaving hundreds of vessels stranded amid the conflict and subsequent Iranian retaliation.

Analysts at JPMorgan Chase said in a note to clients that although Iran has so far avoided targeting most critical energy infrastructure, shipping risks remain extremely high.

The bank estimates that around 329 oil tankers are currently stuck in the Gulf, highlighting the scale of the disruption to global energy logistics.

With the Strait of Hormuz serving as a crucial artery for global oil and gas shipments, prolonged instability in the region could tighten supplies further and keep energy markets on edge in the coming weeks.