The Digest: The price of Brent crude oil rose by 3.37 percent to $100.54 per barrel on Thursday, as investors weighed concerns over prolonged conflict in the Middle East and potential supply disruptions. The increase follows a plunge to $96 earlier in the week after President Donald Trump postponed military strikes against Iranian energy infrastructure for five days. Iran is reportedly reviewing a US proposal to end the war, with Turkey, Egypt, and Pakistan leading peace mediation efforts. The conflict has halted shipments through the Strait of Hormuz, which typically carries one-fifth of global crude supply.
Key Points:
- Oil prices rebounded above $100 as investors remain cautious about potential supply disruptions despite ceasefire talks.
- The Strait of Hormuz remains effectively closed, choking off approximately 20% of global crude oil trade.
- Iran is reviewing a US peace proposal while White House officials warn of harsher action if Tehran refuses to accept military defeat.
- The International Energy Agency has described the war as creating the largest supply disruption in global oil market history.
- Nigerian petrol prices have already risen to record levels amid the ongoing crisis, with further increases possible.
Sources: The Cable
