Again, Oil Surges To $102 Amid Gulf Crisis, Settles At $99

Oil prices surged dramatically past $100 per barrel on Thursday amid escalating Gulf tensions, only to close slightly lower at $99, as Brent crude reflected wild volatility driven by fears of prolonged supply disruptions.

Brent crude spiked to $102.70 intraday—a 9.49 per cent gain—before pulling back to settle at $99.448, while West Texas Intermediate (WTI) climbed to $95.01 (up 8.89 per cent) and later tested $97 amid similar pressures. The rally stemmed from Iranian strikes on oil infrastructure and tanker movements near Oman and Iraqi waters, heightening concerns over Gulf supply routes.

The rally follows reported Iranian strikes linked to oil infrastructure and tanker movements around Oman and Iraqi waters, developments that have raised fresh concerns about disruptions to crude supply routes in the Gulf region.

Traders reacted to security threats in the Strait of Hormuz, where one-fifth of global oil flows, prompting tanker rerouting and slowdowns.

Iran’s new Supreme Leader, Mojtaba Khamenei, declared the Strait of Hormuz must remain closed in his first public statement, coinciding with intensified IRGC strikes on tankers and clashes involving Israel and GCC states.

Tankers have been blocked from Gulf deliveries since the conflict began this month, effectively halting 20 per cent of global oil trade and forcing GCC members to slash output by 10 million barrels per day as storage filled.

The IEA labelled this the largest oil market disruption in history, triggering a 400 million-barrel release from strategic stockpiles among its members.

Energy experts attribute the surge—and subsequent dip—to a geopolitical risk premium, warning of further volatility if conflicts worsen.

Market anxiety has also intensified around the Strait of Hormuz, a critical shipping lane through which roughly one-fifth of global oil supply passes, as security threats have forced some tanker operators to slow or reroute shipments.

Energy analysts say the renewed tensions have injected a strong geopolitical risk premium into crude prices, pushing Brent back above the psychological $100 level and raising the possibility of further volatility in global fuel markets if the conflict escalates.