CNBC _ Oil prices rose by more than three dollars a barrel on Thursday, amid escalating concerns over the expansion of the conflict in the Middle East region and further disruptions to crude supplies.
Brent crude futures jumped 3.3% to $112.44 a barrel
Brent crude futures rose $3.6, or 3.3%, to $112.44 a barrel, nearing their highest levels in five months.
US crude futures rose 2.9% to $99.91 a barrel
US West Texas Intermediate crude futures also rose $2.8, or 2.9%, to $99.91 a barrel.
The Yemeni Houthi group launched attacks on several targets on Wednesday, resulting in at least one death and 8 injuries at a civilian airport in the city of Dammam, while two people were killed in a drone attack targeting a Saudi oil field.
In a related context, Iranian media reported on Wednesday that explosions were heard in the Sirik area of southern Iran, noting that the nature and source of these explosions remain unknown.
Iranian Foreign Minister Abbas Araghchi told the Financial Times on Wednesday that his country is fully prepared to defend itself. For his part, Iranian President Masoud Pezeshkian told state media that the United States cannot expect dialogue in light of the blockade it imposes on Iran and its issued threats.
At least 18 attacks on maritime navigation over the past two weeks
Data from Kpler shows at least 18 attacks on maritime navigation over the past two weeks. Analysts at the London Stock Exchange Group warned that Iran is targeting oil tankers in areas well beyond the Strait of Hormuz, reaching the Gulf of Oman, which threatens crude oil loading operations in the Gulf region, as well as ship-to-ship oil transfer operations supporting loading from the region.
Meanwhile, Russian President Vladimir Putin received US Special Envoy Steve Witkoff in St. Petersburg on Wednesday for talks on ending the war in Ukraine, as part of a new US push to halt Europe's deadliest conflict since World War II.
The Kremlin stated that Putin agreed to resume peace talks with Ukraine mediated by the United States as soon as possible, potentially by next month. Ukrainian President Volodymyr Zelensky expressed his support for these talks, hoping they would begin as soon as possible.
Decline in US crude oil inventories
The US Energy Information Administration announced on Wednesday that US crude oil inventories fell by 3.06 million barrels to 412.5 million barrels over the past week, while analysts polled by Reuters had expected a decline of 820,000 barrels.
Administration data also showed an increase in distillate inventories, which include diesel and heating oil, by 1.68 million barrels to 104.3 million barrels, whereas expectations pointed to a decrease of 1.16 million barrels.
