Fuel prices have risen again in the global market due to a series of attacks and increased conflicts in the Middle East's vital sea routes.
Brent crude surged above $108 a barrel on Thursday as the US-Iran war entered its seventh month, with intensified attacks on shipping routes raising concerns about prolonged disruptions to global energy supplies.
The international benchmark rose 7.5% to settle at $108.78 per barrel at 2035 GMT, reaching its highest level since May. US benchmark West Texas Intermediate (WTI) also climbed 8% to $103.70 a barrel.
Oil market recovery erases summer losses
The sharp gains erased steep losses recorded earlier this year, with rising geopolitical risks reversing the decline seen in oil markets during early summer trading. WTI has recovered the losses registered in June and July, while Brent is trading well above its early June levels.
White House offers conflicting assessments
Senior White House advisers have privately discussed with President Donald Trump the possibility that the conflict could continue through the remainder of his term ending in January 2029, according to a Wall Street Journal report citing US officials. Speaking to reporters on Wednesday, Trump said the war would "end immediately" after the November 3 midterm elections. "I think the war will end immediately after the election because they can't hold out any longer," he said, offering a timeline that contrasts with the extended duration envisioned by his senior aides.
Attacks on shipping drive supply fears
The gains came as intensifying attacks on commercial vessels raised fears of further disruption to oil flows from the Middle East, threatening to choke off supplies from the region. The conflict has now extended into its seventh month without a diplomatic resolution, driving both major benchmarks to their highest levels since May as traders price in potential shortages.
FP/A
