Crude Oil Prices Edge Higher as Middle‑East Conflict Fuels Supply Concerns

Brent and WTI crude futures rose on Thursday as traders considered strong US economic data, even as they remained concerned about potential supply disruptions amid the escalating conflict in the Middle East. 

Brent and WTI Futures Rise 

On March 5, 2026, at 07:28 AM, Brent Oil Futures (May 26) were trading at US$83.19, up +$0.68 or 0.82% on the day. The contract’s intraday range was $82.20–$83.61, while the 52‑week range sits between $58.40 and $85.12. 

US West Texas Intermediate (WTI) Futures (April 26) were quoted at US$76.62, gaining +$1.96 or 2.63%. Its day’s range was $75.57–$76.88 and the 52‑week range is $54.98–$78.40. 

Both benchmarks closed almost 5% higher on Tuesday, extending a 7% gain recorded at the start of the week and pushing Brent to its highest level since July 2024. 

Escalating Middle‑East Conflict Fuels Supply Risks 

The market’s upward bias reflects heightened geopolitical tension after US and Israeli forces struck Iranian military assets, killing Supreme Leader Ayatollah Ali Khamenei. US Admiral Brad Cooper, who commands forces in the region, reported that more than 2,000 Iranian targets have been hit. 

Iran has retaliated with missile and drone attacks on Arab states hosting US bases and has warned commercial shipping operators, explicitly threatening oil tankers transiting the Strait of Hormuz, a chokepoint that carries roughly one‑fifth of global crude shipments. 

US President Donald Trump has also signalled readiness to protect commercial shipping, pledging that the US Navy will escort tankers through the Strait if necessary. However, insurers are already withdrawing war‑risk coverage for vessels navigating the corridor, meaning any assurances will take time to translate into tangible security. 

Economic Data Provides a Boost 

Traders are also digesting robust US labour market data. Private‑sector employment rose by 63k in February, surpassing the consensus forecast of 50k and representing the strongest reading in roughly a year, according to ADP. The result eases concerns that higher oil prices could force the Federal Reserve to maintain a tighter monetary stance for longer. 

All eyes now turn to the upcoming non‑farm payrolls report due on Friday for further clues on the trajectory of US interest‑rate policy. 

Conclusion 

For the moment, oil markets sit at the intersection of two powerful forces: a geopolitical risk premium from the escalating US–Israel–Iran confrontation, and a buoyant economic backdrop driven by strong US labour data. Should the Strait of Hormuz remain partially obstructed, the upside potential for Brent and WTI remains substantial, but any de‑escalation or successful diplomatic intervention could see the premium recede. 

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