Crude oil prices witnessed significant volatility on Thursday, climbing above key psychological levels as markets reacted to intensifying geopolitical risks in the Middle East.
Brent crude futures rose to $105.16 per barrel, gaining over 4.5%, while US West Texas Intermediate (WTI) crude surged to $103.39, up more than 3%. The rally reflects heightened concerns over potential supply disruptions and instability in key oil-producing regions.
Oil markets were rattled after US President Donald Trump issued strong warnings against Iran, stating that Washington could take aggressive action in the coming weeks. His remarks heightened fears of further escalation in the region.
Although Trump later suggested that core strategic objectives in the conflict were nearing completion, uncertainty surrounding the situation has continued to keep traders on edge.
Despite the sharp rise, oil prices also experienced fluctuations as markets weighed the possibility of a US pullback from the conflict. Reports indicating a potential end to hostilities triggered a temporary decline in prices during early trade.
Brent crude slipped towards $100 per barrel, while WTI dipped below $99, reflecting cautious optimism that geopolitical tensions may ease.
Market participants remain concerned about supply disruptions, particularly around the Strait of Hormuz, a critical route for global oil shipments. Even in the event of de-escalation, the absence of a formal ceasefire agreement could keep supply risks elevated.
Recent incidents, including attacks on oil tankers in the region, have further amplified concerns about the safety of maritime trade and energy infrastructure.
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The International Energy Agency has warned that prolonged disruptions could begin to affect European economies, which have so far relied on previously contracted supplies.
Rising geopolitical risks, combined with uncertainty over supply chains, are likely to keep crude oil markets volatile in the near term.
Crude oil prices remain highly sensitive to geopolitical developments in the Middle East. While hopes of de-escalation offer some relief, persistent supply risks and strategic uncertainty are expected to keep prices elevated and markets volatile in the coming sessions.
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Published on: Apr 2, 2026, 8:04 AM IST
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