Oil prices rise by more than $1 per barrel on Thursday

Oil prices rose by more than $1 per barrel on Thursday, recovering from the previous session’s losses as concerns over prolonged Middle East conflict continued to threaten global supply.

Brent crude increased 1.61 per cent to $103.87 per barrel, while US West Texas Intermediate (WTI) rose 1.65 per cent to $91.81, after both benchmarks had dropped over 2 per cent on Wednesday.

Market sentiment weakened as Iran signalled no intention to hold talks despite reviewing a US proposal, while Washington warned of tougher action if Tehran rejects its terms, reducing optimism for a ceasefire and heightening price volatility.

Supply risks intensified as shipments through the Strait of Hormuz were nearly halted, in what the International Energy Agency described as the largest oil disruption on record, alongside outages affecting about 40 per cent of Russia’s export capacity and declining Iraqi production.

Meanwhile, US crude inventories rose by 6.9 million barrels to 456.2 million barrels in the week ending 20 March, significantly exceeding expectations.