RoydadNaft –  Brent crude oil futures rose $0.83, or 1.06%, in today’s trading to settle at $78.88 per barrel. U.S. West Texas Intermediate (WTI) crude futures also climbed $0.80, or 1.09%, to $74.37 per barrel. The gains were recorded relative to yesterday’s closing prices. 

According to Roydad Naft, oil prices rose for the third consecutive day as markets once again came under pressure from escalating geopolitical tensions in the Middle East. Recent U.S. strikes on targets in Iran have weakened hopes for resuming negotiations and reducing tensions, while raising concerns about the security of oil supplies from the Persian Gulf. 

Analysts believe the main driver behind the price increase is the return of the “geopolitical risk premium” to the oil market. Although ship traffic through the Strait of Hormuz has not come to a complete halt, the reduced volume of oil tankers, higher insurance costs, and fears of disruptions to Iranian oil exports have encouraged traders to buy oil contracts. The Strait of Hormuz carries roughly one-fifth of the world’s seaborne traded oil and liquefied natural gas, and any disruption there can quickly affect global prices. 

Energy market experts also note that the cancellation of some exemptions and restrictions related to Iranian oil exports, combined with ongoing political uncertainties, has added further ambiguity to the global supply outlook. According to market analysis firms, as long as the risk of military conflict in the region persists, sharp oil price volatility is likely to continue — even if the physical supply-demand balance does not indicate an immediate shortage.