Oil prices increased by 2% on 26 March, recovering the losses incurred the previous day, driven by concerns that ongoing conflicts in the Middle East might lead to further disruptions to energy supplies.
As of 06:38 GMT, Brent crude futures had risen by $2.08, or 2.03%, reaching $104.30 per barrel (bbl), reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) crude futures climbed $1.93, or 2.14%, to $92.25 per barrel.
Both benchmarks had fallen by more than 2% on Wednesday.
The recent escalation in oil prices comes amid ongoing uncertainties surrounding the Middle East conflict, which has significantly disrupted energy supplies through the Strait of Hormuz.
This vital passageway typically facilitates around 20% of global crude oil and liquefied natural gas transport.
The International Energy Agency (IEA) has identified this as an unprecedented disruption to oil supplies.
Iran is in the process of evaluating a US proposal aimed at resolving the conflict. However, the country has not expressed any intention to negotiate an end to the hostilities, according to Iran’s foreign minister.
US President Donald Trump’s 15-point proposal, communicated through Pakistan, includes stipulations such as the elimination of Iran’s highly enriched uranium reserves and restrictions on its ballistic missile programme, according to sources within the Israeli cabinet.
Furthermore, Japanese Prime Minister Sanae Takaichi has requested additional coordinated releases from oil stockpiles during discussions with IEA head Fatih Birol, Reuters reported.
Following an agreement to release a record quantity of oil reserves in partnership with the IEA to compensate for the supply disruption from the Middle East, Takaichi announced that Japan would also access joint oil reserves shared with producing nations domestically.
Adding further strain to global oil supply concerns, Ukrainian drone strikes and other conflicts have halted around 40% of Russia’s export capacity.
Iraqi oil production is also under pressure as storage tanks approach maximum capacity.
