Oil prices rose to their highest close in nearly four years as supply concerns grew following new disruptions linked to the conflict involving Iran.
Brent crude settled above $112 per barrel, its strongest level since mid-2022, while U.S. crude also moved higher. The gains came as uncertainty increased over oil flows from the Middle East, particularly after Iraq declared force majeure on some oilfields operated by foreign companies.
Markets are also watching the strategic Strait of Hormuz, a key route that carries a large share of the world’s oil shipments. Any disruption in the area can quickly affect global supply expectations and push prices upward.
Donald Trump said the U.S. continues to monitor the situation closely as military tensions remain high. Analysts believe prices may stay elevated while uncertainty continues and supply risks remain unresolved.
Energy experts say even temporary disruptions can take time to stabilise, especially if infrastructure damage limits production capacity.The market is starting to consider that supply shortages might last longer than people first thought.
With ongoing geopolitical risks influencing the situation, traders will probably keep responding quickly to any news that could impact oil production or transportation in the area.
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