LAGOS, Mar 5 – Global oil prices climbed sharply on Thursday as escalating conflict in the Middle East heightened concerns over potential disruptions to critical energy supplies.
Brent Crude rose by $2.44, or roughly 3 percent, reaching $83.84 per barrel during early trading hours, marking the fifth consecutive session of gains. Meanwhile, West Texas Intermediate increased by $2.44, or about 3.3 percent, to trade near $77.10 per barrel.
Market sentiment remained fragile as investors monitored risks to energy shipments across the region, particularly around the strategically vital Strait of Hormuz. Analysts at ANZ noted that the waterway remains a central concern given its importance for global oil and liquefied natural gas flows.
Reports indicated that Iranian forces have targeted oil tankers operating in or around the strait. Explosions were also reported near a tanker vessel off the coast of Kuwait, according to information released by United Kingdom Maritime Trade Operations.
The latest escalation follows the launch of military operations involving the United States and Israel against Iran. The conflict has unsettled global financial markets and heightened concerns about a prolonged disruption to energy infrastructure and trade routes across the region.
Supply pressures have also been compounded by production challenges elsewhere in the Gulf. Iraq, the second largest crude producer within OPEC, has reportedly reduced output by nearly 1.5 million barrels per day due to storage constraints and limited export capacity.
Meanwhile, Qatar, one of the world’s leading liquefied natural gas exporters, declared force majeure on gas shipments, indicating that disruptions could persist for several weeks before production levels normalize.
Shipping activity across the Gulf has also been heavily affected. Estimates based on vessel tracking data from MarineTraffic show that roughly 200 vessels, including oil and LNG carriers, have remained anchored offshore near major producers such as Saudi Arabia, Iraq and Qatar. Hundreds of additional ships remain unable to access ports due to restricted navigation routes.
The Strait of Hormuz is regarded as one of the most critical chokepoints for global energy trade, carrying roughly one fifth of the world’s oil and LNG shipments.
Elsewhere, authorities in China have reportedly asked domestic companies to suspend the signing of new contracts for refined fuel exports and to reconsider shipments that have already been scheduled, reflecting growing caution within global energy markets.
With geopolitical tensions showing little sign of easing, traders increasingly expect continued volatility in oil prices as supply risks remain elevated.
