Brent crude oil futures climbed more than 2%, reaching around $70 per barrel on Thursday — the highest intraday level since September — as geopolitical risk premiums surged following renewed U.S. threats against Iran.
U.S. President Donald Trump warned Tehran to agree to a nuclear deal or face possible military strikes, stating that U.S. naval forces in the region stand ready to act if necessary. The prospect of U.S. military action raised market concerns about potential disruptions to oil flows from the Middle East, which accounts for roughly one-third of global crude supply. Any Iranian retaliation could further threaten tanker traffic through the Strait of Hormuz, a key energy shipping route.
Oil prices have rallied this year despite expectations of oversupply, supported by geopolitical tensions involving Iran and Venezuela and recent supply disruptions in Kazakhstan. Trump’s comments further reinforced upside risks in the market.