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EMEA Oil Update: Brent Extends Rally for 2nd Consecutive Day

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Brent futures contract extended gains for a second day on Thursday as intense military escalations between the US and Iran stoked severe supply disruption fears.

Brent gained 2.4% to $92.89 per barrel. Murban futures edged up 0.1% to $88.08/bbl.

According to Saxo Bank analysts, the ongoing crude rally is directly fueled by fresh US-Iran hostilities and growing apprehension over a broader regional conflict.

The escalation follows unprecedented joint military actions on Wednesday, where the US and Saudi Arabia targeted Iran-backed paramilitary forces in Iraq in retaliation for drone strikes on Saudi energy infrastructure, marking the first time Riyadh has publicly joined US air strikes.

This coincided with a heavy wave of direct US strikes against Iran authorized by US Central Command following missile attacks on American forces in Jordan.

Energy markets remain on edge as geopolitical friction threatens global supplies.

Talks have stalled over Tehran's insistence on control of the Strait of Hormuz, and conflict has actively spread to the Red Sea amid Houthi threats of a Saudi blockade.

RBC Capital Markets analysts noted in a Tuesday note that current oil prices may still be underestimating the risk of prolonged supply disruptions.

Despite temporary dips earlier in the week driven by brief pauses in bombing and premature optimism over diplomatic channels, commercial traffic through the Strait of Hormuz remains severely restricted.

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