Oil Prices Jump Nearly 4% Amid Rising US-Iran Tensions and Hormuz Concerns

New Delhi- Global crude oil prices rebounded sharply on Thursday, climbing nearly 4 per cent after heavy losses in the previous session, as renewed military tensions between the United States and Iran reignited fears of possible supply disruptions.

International benchmark Brent crude surged 3.83 per cent to $97.91 per barrel, while US benchmark West Texas Intermediate (WTI) rose around 4 per cent to trade close to $92 per barrel.

The recovery came after reports that US forces carried out defensive airstrikes on a military facility in Iran, intercepted drones targeting a commercial vessel, and struck a launch unit linked to the attacks. The developments have once again raised concerns over the security of the strategically important Strait of Hormuz, a critical global oil shipping route.

US President Donald Trump said he remained unhappy with the progress of negotiations involving Tehran and rejected reports suggesting that Iran and Oman could jointly oversee the waterway.

“The strait's going to be open to everybody,” Trump said, adding that the United States would continue monitoring the route closely.

However, talks remain deadlocked over issues related to Iran’s nuclear programme and Tehran’s insistence on maintaining control over Hormuz. Washington has also ruled out easing sanctions at this stage, while Iran continues to demand financial relief and an end to military strikes.

Oil markets had witnessed a steep sell-off on Wednesday, with prices tumbling more than 5 per cent amid hopes that diplomatic negotiations could ease tensions in West Asia.

Brent crude had settled down by $5.29, or 5.31 per cent, at $94.29 a barrel, while WTI crude dropped $5.21, or 5.55 per cent, to close at $88.68 a barrel.

Both benchmarks also touched their lowest levels in over a month during Wednesday’s session and posted their weakest closing prices since April 17 before rebounding sharply on Thursday.

With inputs from IANS