Oil prices climb nearly 2% in early Asian trading

Global oil prices climbed nearly two per cent during early Asian trading on Thursday (March 5), as ongoing tensions in the Middle East continued to raise concerns about potential disruptions to energy supplies.

By around 11:10 p.m. GMT (7:10 a.m. Singapore time), U.S. benchmark West Texas Intermediate crude oil had risen by about 1.86 per cent to US$76.05 per barrel. The contract had ended Wednesday’s session largely unchanged at US$74.66 per barrel.

Meanwhile, Brent Crude, which closed the previous trading day steady at US$81.40 per barrel, had not yet begun trading at that time.

The rise in prices comes amid heightened uncertainty following the escalating confrontation involving Iran, Israel and the United States, which began over the weekend. The situation has effectively halted shipping activity through the strategic Strait of Hormuz.

Roughly one-fifth of the world’s seaborne crude oil supply passes through this narrow channel, along with significant quantities of liquefied natural gas, making it one of the most critical energy transit routes globally.

In an effort to calm fears of supply disruptions, Donald Trump said on Tuesday that the U.S. Navy was prepared to escort oil tankers through the region if necessary. He also indicated that Washington would provide insurance support for shipping companies operating in the area.

Regional tensions have already affected maritime traffic. According to reports, the Royal Navy of Oman rescued 24 crew members from a Malta-flagged container ship that was hit by missiles while passing through the strait on Wednesday.

The incident marked the fourth reported attack on vessels in nearby waters within a 24-hour period. Missiles either struck or landed close to three other ships sailing off the coasts of the United Arab Emirates and Oman.

Iran’s elite military force, the Islamic Revolutionary Guard Corps, claimed on Wednesday that it had “complete control” over the strategically important waterway.

Financial markets reacted unevenly to the developments. In the United States, major indexes closed higher, with the S&P 500 gaining about 0.8 per cent. European shares also ended the day in positive territory, while stock markets across Asia recorded notable declines.