Brent crude oil prices surged past $70 per barrel on Thursday, extending a more than 4% gain from the previous session, the strongest rally since late October 2025.
Investors and traders are watching closely as both geopolitical risks and supply fluctuations shake the market.
Concerns over a possible conflict between the United States and Iran are driving much of the recent buying. Reports indicate that any U.S. military action could unfold over several weeks, with Israel reportedly pushing for outcomes aimed at regime change in Tehran.
Meanwhile, diplomatic talks have produced no definitive agreement. Iran says it has reached a “general framework” with Washington on a potential nuclear deal, while U.S. officials argue that key issues remain unresolved. President Donald Trump also emphasized that military force remains on the table.
At the same time, oil supply data is adding to market volatility. U.S. crude inventories fell by 0.61 million barrels last week, following a massive 13.4 million-barrel increase the week before, the largest since January 2023.
The combination of geopolitical uncertainty and shifting U.S. inventories is creating an environment of heightened tension and opportunity.
Oil markets are reacting quickly, as traders weigh the risk of military escalation against potential easing if diplomatic efforts succeed.
