DUBAI: Global oil prices rose sharply after reports of attacks on oil tankers and a lack of progress in peace talks between Iran and the United States.
Both major crude benchmarks gained more than $1 during trading.
Brent crude rose $1.45, or 1.67%, to $88.52 a barrel. US West Texas Intermediate (WTI) crude gained $1.15 to reach $82.40 a barrel.
Both benchmarks are also expected to post weekly gains. Brent is on track to rise by nearly 6%, while WTI is expected to gain about 5.4% for the week.
Oil market analyst Andrew Lipow told Reuters that oil prices were rising towards the end of the week following reports of fresh attacks and a lack of significant progress in negotiations on a ceasefire agreement.
He warned that the situation could develop into a major crisis if disruptions to shipping through the Strait of Hormuz continue.
The Strait of Hormuz is a vital route for global energy trade. Any prolonged disruption to shipping through the waterway could affect global oil supplies and push prices higher.
Market analysts said uncertainty over a possible peace agreement between Iran and the United States, along with reports of attacks on tankers, had renewed concerns about oil supplies.
Meanwhile, President Donald Trump said Washington will hit Iran hard economically, as US and Tehran struggle to reach a deal to end a nearly six month war.
At the meantime, he said he would soon declare the Strait of Hormuz US territory, an action which would open another front in the escalating tensions.
His statement come a day after US Treasury Secretary Scott Bessent said Washington was going to apply measures that have “never been seen” on Tehran as soon as next week.
