Oil nears $110 as US-Iran tensions rise

Global crude oil prices climbed sharply this week as rising tensions between the United States and Iran increased

Global crude oil prices climbed sharply this week as rising tensions between the United States and Iran increased concerns over energy supplies. The escalation in geopolitical risks, combined with ongoing disruptions linked to the wars involving Iran and Ukraine, has pushed physical crude cargo prices to their highest levels in nearly two months.

Crude oil cargoes traded across the Middle East, Europe and Africa have risen significantly in value, with some shipments approaching $110 per barrel. The increase reflects growing uncertainty in global energy markets, where buyers are rushing to secure supplies amid fears of further disruptions.

Traders say concerns over supply have become the main driver of the latest price rally. Buyers are seeking immediate deliveries from alternative sources as uncertainty over future exports continues to grow. The stronger demand for prompt cargoes has added further pressure on international oil prices.

The global benchmark Dated Brent, which is used to price more than 60 percent of physical crude oil cargoes worldwide, climbed to $105.70 per barrel on Thursday, according to market data. The benchmark reached its highest level since late May and moved above the $100 per barrel mark for the first time since early June.

Market analysts believe geopolitical developments are having a direct impact on energy prices. Growing fears that conflicts could disrupt production or shipping routes have increased volatility in the oil market. Investors and traders are closely watching developments in the Middle East as they assess the risk of further supply shortages.

Oil broker Tamas Varga said supply concerns have once again become the dominant factor influencing the market. He noted that uncertainty over production and exports is encouraging buyers to secure crude oil before prices rise even further.

The market was also affected by developments in Kazakhstan. Authorities there announced that the country’s main export terminal for CPC Blend crude oil on the Black Sea had been forced to suspend operations following reported Ukrainian drone attacks. The disruption affected crude exports and reduced oil production.

According to a source familiar with the situation, Kazakhstan’s crude oil output has fallen by nearly half, dropping to around 460,000 barrels per day. The decline has added to global supply concerns at a time when markets are already under pressure from geopolitical tensions.