On Thursday, oil prices experienced a significant increase in Asian markets, driven by the escalating conflict between the US-Israel and Iran, which heightened fears of prolonged disruptions in vital oil and gas supplies from the Middle East. Brent crude fluctuated above $84 per barrel, showing a rise of up to 3.5%, while American crude surpassed $77, increasing by more than 4%.

Market analysts reported that crude oil markets have remained vigilant, facing ongoing supply risks following the escalation of attacks and the expansion of warfare in the Middle East. Concerns have intensified regarding the flow of supply through the Strait of Hormuz, a critical chokepoint for oil transportation. Analyst notes highlighted that the geopolitical crisis is creating a volatile environment for energy markets, impacting global prices and prompting stakeholders to closely monitor developments.

Additionally, Iraq, the second-largest oil producer within the Organization of the Petroleum Exporting Countries (OPEC), has reduced its daily production by nearly 1.5 million barrels due to a lack of storage capacity. This reduction adds another layer of complexity to the already strained oil supply situation, as the market grapples with the balancing act between production cuts from major oil producers and the increasing demand triggered by geopolitical uncertainties.