Oil Prices Surge to 2-Month Highs on Thursday Amid US-Iran Tensions and Trade Hopes

Oil prices rose early Thursday to their highest levels in over two months, driven by renewed geopolitical tensions. As of 12:30 AM GMT, Brent crude futures climbed 15 cents or 0.2% to $69.92 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 22 cents or 0.3% to reach $68.37. The gains followed a more than 4% surge on Wednesday, when both benchmarks touched their highest levels since early April.

The sharp rally was sparked by U.S. President Donald Trump’s remarks that American personnel were being relocated from the Middle East due to rising tensions. His statement, warning Iran against developing nuclear weapons, raised fears of potential supply disruptions, particularly in the Gulf region.

Early Market Reactions at 9 AM IST

By around 9 AM IST, some moderation was observed in oil prices, possibly due to profit booking after Wednesday’s sharp spike. WTI crude was down 0.41% at $67.87, while Brent crude dipped 0.49% to $69.43. Murban crude was also slightly lower, down 0.46% at $69.31.

Support from U.S.-China Trade Hopes and Inventory Drawdown

In addition to geopolitical concerns, optimism surrounding a potential U.S.-China trade deal also buoyed market sentiment. A resolution between the world’s two largest economies is expected to drive energy demand higher.

Further support came from the U.S. Energy Information Administration, which reported a 3.6 million barrel decline in crude inventories last week, bringing total stockpiles to 432.4 million barrels.

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Conclusion

Oil prices are currently being supported by a mix of geopolitical risks, improving global trade outlook, and lower U.S. stockpiles. Traders will remain cautious yet bullish as they monitor further developments in the Middle East and global macroeconomic indicators.

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