Global Oil Prices Rebound 5% Amid Middle East Conflict Worries

On Thursday, oil prices rose 5% as concerns about a prolonged Middle East conflict continued to disrupt supplies. The increase came after a significant decline in the previous session.

Brent futures surged by $5.26, or 5.2%, to $107.48 a barrel, reaching a session high of $107.84. Meanwhile, U.S. West Texas Intermediate crude futures gained $3.53, or 4%, to $93.85 a barrel, peaking at $94.84.

The Middle East conflict has led to a significant strain on global energy markets. The Pentagon is planning to send thousands of airborne troops to the Gulf, while the Iran-aligned Houthi movement has threatened to strike the key Red Sea waterway again in solidarity with Tehran.

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Oil Supply Disruptions

The conflict has nearly halted shipments through the Strait of Hormuz, which typically carries about 20% of the world's crude oil and LNG supply, according to the International Energy Agency. Iraq's oil production has also slumped, with storage tanks reaching high and critical levels.

Global Oil Market Reactions

In response to the supply disruptions, Japanese Prime Minister Sanae Takaichi has asked the IEA to coordinate an additional release of oil stockpiles. Russia's oil pipeline monopoly Transneft will attempt to redirect oil exports from damaged Baltic Sea ports.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

U.S. Crude Inventories

U.S. crude inventories rose by 6.9 million barrels to 456.2 million barrels in the week ended March 20, the highest level since June 2024 and exceeding analyst expectations.