March 05, World (LNW): Global oil prices edged higher during early Asian trading on Thursday, reflecting mounting anxiety in energy markets over potential supply disruptions linked to the intensifying conflict in the Middle East.
U.S. benchmark West Texas Intermediate (WTI) crude rose by nearly two per cent, trading at about US$76 per barrel after finishing Wednesday’s session largely unchanged at around US$74.66. Meanwhile, Brent crude from the North Sea, which had closed the previous day near US$81.40 per barrel, had yet to resume active trading during the early Asian hours.
Market analysts attribute the upward pressure on prices to growing uncertainty surrounding shipping routes in the Gulf region, particularly the Strait of Hormuz, a narrow but crucial maritime passage through which roughly one-fifth of the world’s seaborne crude oil supply is transported. Significant volumes of liquefied natural gas also pass through the same corridor.
Tensions escalated after hostilities involving the United States, Israel and Iran intensified earlier this week, raising fears that tanker movements through the strait could face further disruptions. Shipping companies and insurers are reportedly reviewing risk assessments as the security situation evolves.
In an effort to reassure markets, U.S. President Donald Trump stated earlier this week that the U.S. Navy stands ready to escort oil tankers travelling through the area if required. He also indicated that Washington would assist shipping firms by providing insurance guarantees to help maintain the flow of energy supplies.
Regional maritime incidents have further heightened concerns. On Wednesday, Oman’s navy rescued 24 crew members from a Malta-flagged container vessel that had reportedly been struck by missiles while navigating the strait, according to state media reports.
The incident marked the fourth reported attack on commercial shipping in the region within a 24-hour period, following earlier reports that projectiles had either struck or landed dangerously close to several other vessels near the coasts of the United Arab Emirates and Oman.
Iran’s Revolutionary Guards later claimed they had established “complete control” over the strategically vital waterway, a statement that has added to market unease.
Despite geopolitical tensions, financial markets in the United States and Europe reacted relatively calmly. Wall Street ended Wednesday’s session on a positive note, with the S&P 500 gaining around 0.8 per cent, while major European indices also closed higher. In contrast, several Asian stock markets recorded notable declines as investors weighed the potential economic fallout from the deepening regional crisis.
