Oil prices surge over 7% as US-Iran war enters seventh month

Brent crude surged above $108 per barrel on Thursday as the US-Iran war entered its seventh month, with intensifying attacks on shipping lanes fueling concerns over prolonged disruptions to global energy supplies. The international benchmark climbed 7.5% to settle at $108.78 per barrel as of 2035GMT, hitting levels not seen since May, while US benchmark West Texas Intermediate (WTI) jumped 8% to $103.70 per barrel.

Market recovery erases summer losses

The sharp gains erased steep losses recorded earlier this year, with rising geopolitical risks reversing the decline seen in oil markets during early summer trading. WTI has recovered the losses registered in June and July, while Brent is trading well above its early June levels.

White House offers conflicting assessments

Senior White House advisers have privately discussed with President Donald Trump the possibility that the conflict could continue through the remainder of his term ending in January 2029, according to a Wall Street Journal report citing US officials. Speaking to reporters on Wednesday, Trump said the war would "end immediately" after the November 3 midterm elections. "I think the war will end immediately after the election because they can't hold out any longer," he said, offering a timeline that contrasts with the extended duration envisioned by his senior aides.

Attacks on shipping drive supply fears

The gains came as intensifying attacks on commercial vessels raised fears of further disruption to oil flows from the Middle East, threatening to choke off supplies from the region. The conflict has now extended into its seventh month without a diplomatic resolution, driving both major benchmarks to their highest levels since May as traders price in potential shortages.