Khaberni - Oil prices surged on Thursday after a report indicated that the United States is considering the possibility of new military action against Iran to break the deadlock in negotiations aimed at ending the war, exacerbating fears of further disruptions in Middle East supply.
Brent crude futures for June delivery rose $8.17 or 6.92% to $126.20 a barrel by 04:17 GMT, reaching their highest level since March 2022, after recording a 6.1% gain in the previous session.
The June contract, which is rising for the ninth consecutive day, ends on Thursday. The most-traded July contract reached $113.10, up $2.66 or 2.4% after registering a 5.8% gain in the previous session.
West Texas Intermediate crude futures for June rose $3.20 or 2.99% to $110.08 a barrel, after recording a 7% increase in the previous session.
Both indices are on track to gain for the fourth consecutive month.
According to a report published by Axios late Wednesday evening, President Donald Trump is scheduled to receive a briefing today, Thursday, on plans to launch a series of military strikes on Iran in the hope of bringing it back to the negotiating table regarding its nuclear program.
A White House official stated on Wednesday that Trump had spoken with oil companies about how to mitigate the impact of the U.S. blockade of Iranian ports if it continues for months, raising market concerns of a prolonged disruption of oil supplies.
Market analyst at IG, Tony Sicamore, commented in a note, "The chances of reaching a near-term resolution to the Iran conflict or the reopening of the Strait of Hormuz remain slim."
