Oil prices climbed around 4% on Thursday, with Brent crude rising above $105 a barrel as attacks on shipping raised concerns over disruptions to global supplies.
Brent crude futures gained $4.05, or 4%, to $105.26 a barrel by 1215 GMT. U.S. West Texas Intermediate (WTI) crude also crossed the $100 threshold for the first time since May, advancing $3.99, or 4.15%, to $100.04 a barrel.
Brent has risen more than 30% from its early-August lows as hopes for a lasting US-Iran ceasefire faded and hostilities resumed.
Concerns over maritime trade intensified after the Houthis took control of Yemen’s Mocha port on Thursday. Shipping through the Strait of Hormuz has also remained constrained amid a rise in tanker attacks in the Gulf region.
According to the experts, the latest price surge reflected growing expectations that the conflict could continue longer than previously anticipated. They added that any reduction in oil production or exports would further tighten the market and keep prices elevated.
US President Donald Trump warned that Washington could target Iran’s Pickaxe Mountain near the damaged Natanz nuclear facility. He also indicated that the conflict could continue beyond the November midterm elections.
Iran said it had attacked 10 vessels near the Strait of Hormuz on Wednesday after the United States struck five Iranian oil tankers. Iran’s Islamic Revolutionary Guard Corps warned that it would intensify its response to further attacks.
Although concerns over prolonged supply disruptions have pushed Brent above $100, analysts said the future direction of prices would also depend heavily on Chinese demand.
China, the world’s biggest crude importer, has increased oil purchases in recent weeks following several months of relatively weak demand, supporting physical crude markets, according to ING analysts.
Continued growth in Chinese imports could magnify the effect of supply disruptions and push oil prices higher, while weaker purchases could limit further gains.
Meanwhile, OPEC cut its forecast for global oil demand growth in 2026 to 380,000 barrels per day, marking its fifth consecutive downward revision, according to its monthly report released Thursday.
OPEC crude production also declined by about 640,000 barrels per day in August, a Reuters survey showed, as the Iran conflict disrupted Saudi exports and a US blockade reduced Iranian shipments.
