Oil prices climbed significantly on Thursday, with U.S. crude briefly topping $100 per barrel for the first time this year. Mounting geopolitical tensions and targeted strikes on vital energy infrastructure heightened concerns about potential supply interruptions.
West Texas Intermediate crude futures spiked during early Thursday’s session, momentarily breaching the $100 mark before dropping to trade near $98.41 per barrel, an increase of 2.71%. Brent crude also advanced, jumping 3.3% to $110.92 a barrel.
The rally intensified as hostilities in the Middle East escalated, following reports of attacks on essential natural gas and oil facilities. Qatar disclosed that Iranian missile activity had hit a critical liquefied natural gas export terminal. This incident came after Iran cautioned neighboring Gulf states—Qatar, Saudi Arabia, and the United Arab Emirates—against allowing their energy infrastructure to be targeted, in response to a recent Israeli strike on an Iranian gas processing site.
Market anxiety further increased as Israel reportedly targeted Iran’s South Pars field, the world’s largest natural gas reserve. In response, Iran warned it may launch more strikes on oil and gas installations across the region, including threats against important Saudi energy complexes. Further, Iranian military actions partially closed the Strait of Hormuz, a principal maritime route for global oil shipments.
Additional momentum came from news that the Trump administration in Washington is evaluating the deployment of thousands of U.S. troops to the Middle East. According to sources cited by Reuters, a key objective would be to secure tanker traffic passing through the mostly shuttered Strait of Hormuz amid ongoing conflict.
Analysts at Citi indicated in a note that oil prices could escalate further if disruptions worsen, forecasting Brent crude could trade between $110 and $120 per barrel in the near term.
