Brent crude oil futures extended their rally to $71.5 per barrel on Thursday, the highest level since early August 2025, as escalating tensions between the US and Iran threatened Middle Eastern supply. Reports citing government officials indicated that the US could soon launch a military operation in the region, with Israel reportedly pushing for regime change in Tehran.
At the same time, the head of the United Nations nuclear watchdog warned that Iran’s window for reaching a diplomatic agreement is narrowing amid a US military buildup. Any conflict could endanger flows through the Strait of Hormuz, a vital chokepoint that handles roughly one-third of global seaborne oil trade.
Meanwhile, a new EIA report showed that US crude inventories plunged by 9 million barrels in the second week of February, sharply defying market expectations for a 2-million-barrel build that would have fully offset the previous week’s 8.5-million-barrel increase.
