Oil prices climbed sharply on Thursday as fears of a possible US military strike on Iran raised concerns about supply disruptions from the Middle East.
Brent crude futures rose by $1.61, or 2.35 percent, to $70.01 a barrel by 06:20 Pakistan Standard Time (PKT). US West Texas Intermediate crude increased by $1.55, or 2.45 percent, to $64.76 a barrel.
At 8:20 PM PKT, Brent was up 4.11 percent or $2.81 at $71 per barrel, while WTI was up 3.89 percent at $65/barrel.
Both benchmarks have now gained more than 5 percent since Monday and are trading at their highest levels since September 29.
Market sentiment has been driven by rising geopolitical tension after US President Donald Trump stepped up pressure on Iran to halt its nuclear program, including warnings of potential military action. A US naval group has also arrived in the region, adding to concerns over security risks to oil supply routes.
Iran is the fourth-largest oil producer within the Organization of Petroleum Exporting Countries, with output of around 3.2 million barrels per day. Any disruption to Iranian exports or regional shipping could tighten global oil supplies and push rates higher.
Investors are increasingly expecting escalation after reports that the US administration wants to target Iranian security forces and leadership.
Energy markets remain sensitive to developments in the Middle East, where even limited conflict can have an outsized impact on oil prices due to the region’s role in the global energy market.
