Brent crude futures climbed back toward $97 per barrel on Thursday as renewed geopolitical tensions in the Middle East reignited fears of supply disruptions through the Strait of Hormuz, one of the world’s most critical oil shipping corridors.
The rebound follows reports of fresh US military strikes linked to Iran, while negotiations between Washington and Tehran remained deadlocked over several major issues tied to ending the conflict and restoring stability in the region.
Market sentiment had briefly improved earlier this week amid hopes that both countries could reach a broader peace agreement that would lead to the reopening of the Strait of Hormuz. However, optimism weakened after reports suggested talks were struggling over Iran’s demands to maintain control over the strategic waterway and preserve elements of its nuclear programme.
US President Donald Trump also hardened his position, reiterating that Washington would not accept what he described as a “bad deal” while rejecting immediate sanctions relief despite Tehran’s calls for economic concessions and an end to military attacks.
The renewed escalation has once again shifted investor focus back to the Strait of Hormuz, a narrow maritime chokepoint that handles roughly one-fifth of global oil shipments. Concerns over possible shipping disruptions have fueled volatility across energy markets in recent sessions.
Despite Thursday’s rebound, oil prices remain on track for a second consecutive weekly decline as traders continue to weigh the possibility of a diplomatic breakthrough against the risk of a prolonged regional conflict.
Analysts say a successful agreement between the US and Iran could quickly push prices back into the high $80s or low $90s if shipping activity normalises. However, any sustained disruption to flows through Hormuz could drive Brent crude back above the $100 mark.
The latest swings in oil prices are also raising fresh concerns about global inflation, transport costs, and energy security, particularly for major oil-importing economies in Asia and Europe.
