Global oil prices climbed by more than $1 per barrel on Thursday, recovering from losses in the previous session as investors reacted to escalating tensions and uncertainty surrounding the Middle East conflict.
Brent Crude futures rose $1.65, or 1.61 per cent, to $103.87 per barrel as of 0424 GMT. Meanwhile, West Texas Intermediate (WTI) crude futures increased by $1.49, or 1.65 per cent, to $91.81 per barrel.
Both global benchmarks had fallen by more than 2 per cent on Wednesday, reflecting earlier hopes of diplomatic progress.
However, renewed concerns about prolonged fighting in the Middle East and potential disruptions to energy supply quickly reversed market sentiment.
Iran is reportedly reviewing a proposal from the United States aimed at ending the conflict. Despite this, Iran’s foreign minister said the country has no intention of entering negotiations to end the war at this time.
Tensions also escalated after Donald Trump warned that the United States could intensify pressure on Iran if Tehran fails to accept what he described as a military defeat.
The warning was reiterated by White House Press Secretary Karoline Leavitt, who said Washington would take tougher measures if Iran refuses to comply with the proposal.
Market analysts say the lack of progress in ceasefire discussions has heightened uncertainty in the energy market.
According to Tsuyoshi Ueno, senior economist at NLI Research Institute, optimism surrounding a ceasefire has diminished significantly.
He noted that the demands set by Washington appear high, which could prolong negotiations and keep oil markets volatile depending on military developments and diplomatic outcomes.
Analysts warn that any further escalation in the region could disrupt global energy flows and push oil prices even higher in the coming weeks.
