Oil prices extended their gains as concerns grow that supply from the Middle East will remain disrupted due to the ongoing U.S.-Iran conflict. Brent crude futures saw a significant increase, following a substantial rise in the previous session. Similarly, U.S. West Texas Intermediate futures also climbed.
Market anxieties were heightened after President Donald Trump discussed potential prolonged U.S. blockades of Iranian ports with oil companies. Analysts suggest that prospects for a near-term resolution to the conflict and the reopening of the Strait of Hormuz, a critical chokepoint for global energy supplies, remain dim.
Tehran has imposed significant shipping restrictions through the Strait of Hormuz since U.S. and Israeli air strikes began in February, with the U.S. subsequently blockading Iranian ships.
In parallel, the OPEC+ group is expected to agree on a modest increase in oil output quotas. However, the withdrawal of the United Arab Emirates from OPEC, effective May 1, is anticipated to impact the group's price control capabilities. Experts predict it will take months for Gulf countries to return to pre-war production levels, further compounding supply concerns.