CAIRO, Mar 4 – Oil prices rose for a third consecutive session as escalating conflict involving Iran, the United States and Israel heightened concerns over supply disruptions across the Middle East.
Brent crude gained 1.4% to 82.57 dollars per barrel in early trading, after closing at its highest level since January 2025 in the previous session. US West Texas Intermediate advanced 1% to 75.28 dollars per barrel, also marking its strongest settlement since June. Both benchmarks have climbed roughly 5 percent or more over the past two sessions.
Market participants say geopolitical risk has overtaken traditional price drivers such as inventory data, macroeconomic releases and production guidance from OPEC and its allies.
The latest surge follows strikes by Israeli and US forces on Iranian targets, prompting retaliatory action that has affected energy infrastructure in a region responsible for nearly one third of global oil output.
Supply risks have intensified further in Iraq, OPEC’s second largest producer, where officials indicated that output has been reduced by nearly 1.5 million barrels per day due to storage constraints and blocked export routes. Without a resumption of shipments, broader production shut ins could follow.
Iran has also targeted vessels in the Strait of Hormuz, a critical artery through which roughly one fifth of global oil and liquefied natural gas flows. Maritime traffic through the strait remains severely constrained.
Donald Trump said the US Navy could escort tankers through the waterway if required and that the US International Development Finance Corporation had been directed to provide political risk insurance and financial guarantees for Gulf maritime trade. The move comes as some insurers withdraw war risk coverage for ships operating in the area.
The disruption is already prompting supply adjustments. Countries including India and Indonesia are exploring alternative energy sources, while several Chinese refineries have either reduced operations or accelerated maintenance schedules.
In the United States, industry data showed crude inventories rose by 5.6 million barrels last week, significantly above market expectations of a 2.3 million barrel increase. Official government figures are due later Wednesday.
For now, traders remain focused on physical export flows from the Gulf, potential tanker incidents and naval deployments, all of which could dictate the next leg of oil’s volatile trajectory.
