Key facts
- Oil prices surged on Thursday.
- Tensions in the Middle East escalated.
- Oil prices remain below last week's peak.
- Brent crude neared $79 per barrel.
- Iran and Oman reported progress on a Strait of Hormuz deal.
- Houthi militants claimed an attack on a Saudi oil tanker.
Oil prices experienced a sharp increase on Thursday, reversing earlier declines as tensions in the Middle East escalated. Despite the surge, prices remained below the peak reached last week, providing some measure of relief to the market. Brent crude futures approached $79 per barrel, reflecting the volatile market conditions influenced by geopolitical developments.
Market sentiment was shaped by a mix of diplomatic progress and militant actions. Iran and Oman announced progress on a deal concerning the Strait of Hormuz, a critical chokepoint for global oil trade. Concurrently, Houthi militants claimed responsibility for an attack on a Saudi oil tanker, adding to the regional instability and contributing to the upward pressure on oil prices.