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Oil prices surged on Thursday, extending a period of heightened volatility as investors reacted to mixed signals surrounding potential de-escalation in the Middle East. Gains were driven by persistent uncertainty over diplomatic efforts, even as Iran reviews a U.S.-backed proposal to end the ongoing conflict.
As of 05:33 ET (09:33 GMT), Brent crude futures for May delivery rose 4.0% to $106.34 per barrel, while U.S. West Texas Intermediate (WTI) crude advanced 3.7% to $93.66 per barrel. The rebound follows a decline in the previous session, underscoring the fragile and reactive nature of current oil market sentiment.
Markets are closely monitoring developments in Tehran, where officials are reportedly assessing a U.S. proposal aimed at halting hostilities. However, Iran has denied engaging in direct negotiations with Washington and indicated that key differences remain unresolved. This lack of clarity continues to keep traders cautious and contributes to ongoing price swings.
Oil markets have experienced sharp fluctuations in recent weeks, as the conflict disrupted energy flows from the Persian Gulf, a region critical to global crude supply. Earlier this month, Brent crude surged to nearly $120 per barrel amid fears of supply outages.
The Strait of Hormuz remains a central concern for investors. The strategic waterway, which handles roughly one-fifth of global oil shipments, has effectively been closed to tanker traffic due to the threat of Iranian attacks, amplifying concerns over supply disruptions.
Wednesday’s decline in oil prices followed reports suggesting that negotiations between the United States and Iran could be underway. However, conflicting messages from both sides have since undermined confidence in a swift resolution.
Additional uncertainty stems from Washington, where officials have warned of stronger measures if Iran does not engage constructively. At the same time, President Donald Trump has reportedly expressed a preference for a rapid end to the conflict, adding to the mixed policy signals influencing markets.
Despite recent volatility, crude prices remain well above levels seen prior to the outbreak of hostilities in late February. The sustained rise in energy costs is fueling concerns about renewed inflationary pressures globally, which could complicate the outlook for central banks and potentially delay expectations for interest rate cuts.
Overall, oil markets remain highly sensitive to geopolitical developments, with investors balancing hopes for diplomatic progress against the ongoing risk of supply disruptions in a critical global energy corridor.
