Brent crude climbed above US$95 per barrel as escalating attacks on Saudi energy infrastructure and shipping disruptions heightened concerns over global oil flows.

Oil prices surged on Thursday night (Australian time), with Brent crude rising above US$95 per barrel as attacks on Saudi energy infrastructure escalated and disruptions through the Strait of Hormuz threatened global supply.

Brent futures settled at US$95.82 per barrel, gaining US$3.06, or 3.3%. US West Texas Intermediate (WTI) crude also advanced, closing at US$88.74 per barrel, up US$2.21, or 2.6%.

The rebound followed a period of relative weakness, with Brent trading between US$91 and US$93 during the week after falling from around US$115 earlier in the month. Despite Thursday's increase, both major oil benchmarks remained approximately 2.5% lower for the week.

Saudi Energy Attacks and Hormuz Disruptions Raise Supply Concerns

The latest price increase came as attacks on Saudi energy infrastructure intensified, adding to concerns about potential disruptions to global oil supplies.

Shipping activity through the Strait of Hormuz also remained a key concern for traders. The strategic waterway is an important route for international energy shipments, and interruptions could threaten the movement of oil to global markets.
The combination of infrastructure attacks and shipping disruptions contributed to renewed buying interest, pushing both Brent and WTI higher during the session.
Trump’s Iran Comments Weigh on Diplomatic Hopes

Market sentiment was also influenced by comments from US President Donald Trump, who said he had secured sufficient financial leverage over Iran and control over the Strait of Hormuz, removing the need for an agreement with Tehran.

In a post on Truth Social, Trump wrote: "We don't need a deal with Iran. Those days have long since passed."

Traders viewed the remarks as negative for the prospects of further diplomatic progress in the conflict. The comments added another layer of uncertainty to an already sensitive geopolitical environment, where developments involving Iran and regional energy infrastructure continue to influence oil market expectations.

Oil Markets Remain Sensitive to Geopolitical Developments

Although Thursday's rally pushed Brent back above US$95, the broader weekly decline indicates that prices have continued to fluctuate as traders assess developments in the Middle East.

The direction of oil prices remains closely linked to the extent of disruption to energy infrastructure and shipping routes, as well as the prospects for diplomatic progress.

What Investors Should Watch Next

Investors will be monitoring developments around Saudi energy infrastructure and shipping through the Strait of Hormuz for signs of further supply disruption. Any changes in diplomatic prospects involving the US and Iran could also influence market sentiment and contribute to volatility in Brent and WTI crude prices.
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