Brent nears $120 as Iran conflict keeps markets on edge

Global oil prices climbed further on Thursday as ongoing tensions tied to the US-Iran conflict continue to disrupt supply from the Middle East, raising concerns about prolonged shortages in the global energy market.

Benchmark Brent crude rose above $119 per barrel, extending a multi-day rally, while West Texas Intermediate also posted gains after several strong sessions. The surge comes amid stalled diplomatic efforts to resolve the conflict involving the United States, Israel, and Iran.

According to Reuters, market anxiety intensified after US President Donald Trump held talks with oil companies about managing the impact of a potential long-term blockade of Iranian ports. Analysts say the chances of reopening the Strait of Hormuz remain slim in the near term.

The situation has significantly constrained oil flows, with Iran restricting most shipping through the Strait while the US continues its countermeasures. Meanwhile, the OPEC+ group is expected to consider only a modest production increase, even as the United Arab Emirates prepares to exit the alliance, a move analysts say could weaken its influence over global oil prices.

Despite this, experts believe it may take months for Gulf producers to restore output to pre-conflict levels, keeping upward pressure on prices in the near term.