Oil prices increased sharply on Thursday as tensions in the Middle East raised concerns about global supply. Brent crude oil rose by more than $4, reaching around $112 per barrel after briefly gaining nearly $5 earlier in the day.
At the same time, US West Texas Intermediate (WTI) crude climbed close to $97 per barrel, after earlier increasing by over $3.
The rise in prices followed recent Iranian strikes on energy infrastructure in the region. These developments have increased fears that oil supplies could be disrupted for a longer period. When key facilities are targeted, it creates uncertainty in the market and pushes prices higher.
Analysts believe that growing geopolitical risks are a major reason behind this sudden increase. Attacks on oil installations and concerns about the safety of shipping routes, especially around the Strait of Hormuz, are adding to market anxiety. This area is one of the world’s most important routes for oil transportation, so any disruption there can have a global impact.
At the same time, the US Federal Reserve decided to keep interest rates unchanged. However, it warned that inflation may continue to rise. This added further pressure on financial markets, which are already reacting to instability caused by conflict in the energy sector.
