WTI crude futures pared earlier gains to trade near $108.8 per barrel on Thursday, after surging more than 13% intraday and holding close to their highest levels since June 2022. Prices eased slightly following reports that Iran is working with Oman on a protocol to monitor traffic through the Strait of Hormuz, prompting cautious optimism over tighter oversight of the vital shipping lane.
However, the market remains underpinned by escalating geopolitical tensions. President Donald Trump warned that the conflict with Iran could drag on for weeks and vowed to intensify US strikes, amplifying concerns over prolonged supply disruptions. His comments offered no clear roadmap for reopening the strait, sustaining uncertainty about future flows.
At the same time, the UK is hosting talks with dozens of countries on measures to secure the route, while OPEC+ is weighing a possible increase in output. Yet any additional barrels from the alliance are unlikely to reach the market quickly enough to ease near-term supply concerns.
