Oil prices surged on Thursday as tensions escalated between Iran and the United States, following Iran’s accusations of U.S. violations of a ceasefire agreement. Brent crude futures for June delivery climbed 2.52% to $97.14, while U.S. West Texas Intermediate crude for May rose 2.72% to $96.96 per barrel. This uptick comes after a significant drop in U.S. crude prices, marking the largest single-day decline since 2020.
The renewed tensions could disrupt energy supplies, raising concerns among market participants. Iran’s parliamentary speaker highlighted violations of the ceasefire, which included ongoing Israeli strikes and issues surrounding uranium enrichment rights. The geopolitical landscape remains precarious, with potential implications for oil supply and pricing.
Market professionals should note that while oil prices remain below the $100 mark, refiners are advised to capitalize on this window for opportunistic buying. However, any delays in purchasing could exacerbate product tightness, particularly if physical flows are constrained amid ongoing geopolitical uncertainties.
Source: cnbc.com