Crude oil prices surged to their highest levels in six weeks this Thursday, driven by escalating hostilities between the U.S. and Iran, coupled with growing concerns over potential supply disruptions. Brent crude rose by 1.7% to $97.29 a barrel, while U.S. West Texas Intermediate saw a 2.2% gain, reaching $93.04. This momentum marks the fourth consecutive day of price increases, fueled by reports of significant casualties from U.S. strikes in Iran and stern warnings from Israel regarding the vulnerability of Tehran’s energy infrastructure.

The market remains on edge as shipping activity through the vital Strait of Hormuz has notably declined, dropping well below the typical 10-day average. Analysts suggest that the combination of a globally tight oil supply and the heightened geopolitical risk has created a volatile environment for traders. While Iraq has managed to boost its own exports through heavy discounting and specific transit approvals, the broader market continues to grapple with these supply insecurities alongside speculation regarding upcoming Federal Reserve interest rate adjustments.