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West Texas Intermediate (WTI) crude oil prices surged over 7% on Thursday, trading near $101.10 per barrel in European hours, reversing two days of losses. The rally followed renewed geopolitical tensions after U.S. President Donald Trump warned of potential military action against Iran, stoking fears of disrupted oil supplies from the Middle East. Analysts noted that any escalation in the U.S.-Iran standoff could directly impact global oil markets, given the region's strategic role in energy production.
The price rebound highlights the sensitivity of oil markets to geopolitical risks, particularly in the Persian Gulf. Traders are now closely monitoring statements from OPEC+ allies and U.S. energy policy developments, as these could influence supply dynamics. A sustained break above $101.10 may signal stronger momentum for bulls, while a pullback below $98.00 could reignite bearish sentiment. Investors should also watch for technical resistance levels and broader macroeconomic data affecting demand.
For Gulf and MENA investors, the situation underscores the dual-edged nature of oil price volatility. While higher prices benefit oil-exporting economies, they also raise costs for energy-importing nations in the region. Traders are advised to assess geopolitical risk premiums alongside fundamental factors like OPEC+ output cuts and U.S. shale production trends. The coming weeks will be critical for assessing whether tensions remain contained or escalate further.
