May 28: Global oil prices rebounded sharply on Thursday, climbing nearly 4% as renewed tensions between the United States and Iran raised concerns over potential disruptions to global energy supplies.
Brent crude and West Texas Intermediate (WTI) futures recovered strongly after reports of escalating military activity in the Gulf region intensified fears over the security of oil shipments through the Strait of Hormuz — one of the world’s most critical energy trade routes. Analysts said the market reacted quickly to the growing geopolitical uncertainty, with traders pricing in the risk of supply disruptions.
The rebound followed a volatile trading period in which crude prices had previously declined on hopes of diplomatic progress between Washington and Tehran. However, fresh reports of military strikes and rising regional instability shifted investor sentiment, pushing oil prices higher once again.
Market experts noted that any disruption in the Strait of Hormuz could significantly impact global crude supply, as a substantial portion of the world’s oil exports passes through the narrow shipping corridor. Concerns over shipping delays, rising insurance costs, and tighter supply conditions also contributed to the upward movement in prices.
The surge in crude prices added to broader market anxiety, with investors closely monitoring developments in the Middle East for signs of further escalation or renewed diplomatic efforts. Rising oil prices are also expected to keep inflation concerns elevated, potentially influencing monetary policy decisions across major economies.
Despite the rebound, analysts believe oil markets are likely to remain highly volatile in the coming weeks, with prices continuing to react sharply to geopolitical headlines and developments surrounding US-Iran relations.