Oil rises over 1% in early Asian trade amid MidEast supply concerns

Oil prices climbed more than one percent in early Asian trading on Thursday as concerns over supply disruptions continued due to the ongoing conflict in the Middle East.

At around 0030 GMT, West Texas Intermediate rose 1.45 percent to $75.74 per barrel after closing nearly unchanged at $74.66 on Wednesday. The benchmark had jumped almost two percent at the market open. Brent North Sea crude, which ended the previous session flat at $81.40 per barrel, was not yet being traded.

Asian stock markets, however, rebounded in early trade after several days of losses. South Korea’s Kospi index surged more than 11 percent after plunging over 12 percent the previous day, while Japan’s Nikkei rose more than four percent following a rally on Wall Street overnight.

Market analysts said investors remain highly sensitive to developments in the conflict between the United States and Iran. Stephen Innes of SPI Asset Management noted that markets are reacting quickly to headlines and new intelligence updates, as the situation remains uncertain.

The conflict, which began on Saturday, has effectively halted shipping through the Strait of Hormuz, a key global energy route through which about one-fifth of the world’s seaborne crude oil and large volumes of liquefied natural gas pass.

US President Donald Trump sought to calm fears of supply disruptions by stating that the US Navy is ready to escort oil tankers through the strait and that the United States will provide insurance for shipping companies.

Meanwhile, Oman’s navy rescued 24 crew members from a Malta-flagged container ship that was struck by missiles while passing through the strait on Wednesday, according to state media. It marked the fourth reported attack on vessels in regional waters within 24 hours, with projectiles also hitting or landing near three other ships off the coasts of the United Arab Emirates and Oman.

Iran’s Revolutionary Guards claimed they now have complete control over the strategic waterway.

Despite tensions, US stock markets ended Wednesday higher, with the S&P 500 gaining 0.8 percent, while European markets also closed with gains.