Oil prices climbed Thursday, nearing seven-month highs, as global markets weighed the potential for U.S.-Iran conflict and its impact on supply.
Brent crude traded near $71.12 per barrel, and WTI futures hovered around $65.65. These prices reflect heightened concerns following U.S. military posturing in the Middle East aimed at pressuring Iran regarding its nuclear program.
Analysts suggest that while diplomatic efforts are underway, any military escalation could disrupt supplies from Iran, a significant OPEC producer, and other Middle Eastern exporters.
Adding a counter-pressure, U.S. crude inventories saw a substantial build last week, increasing by 16 million barrels, the largest rise in three years. This surge in U.S. stockpiles tempered the upward momentum in oil prices. Meanwhile, Saudi Arabia is reportedly increasing production as a contingency measure, and OPEC+ may consider output hikes to meet summer demand and offset potential geopolitical price spikes.