Oil Reclaims $90 Level

Oil prices edged higher on Thursday as investors reacted to renewed tensions between the United States and Iran, pushing crude back above the psychologically important $90-per-barrel threshold.

West Texas Intermediate crude futures rose to approximately $90.68 per barrel, while Brent crude traded near $93.56 per barrel as traders assessed the latest escalation in the Middle East. Reports indicated that President Donald Trump threatened additional military strikes against Iran and suggested the United States could seek control of Kharg Island, Iran’s primary oil export terminal.

Kharg Island plays a central role in Iran’s energy sector, handling the vast majority of the country’s crude oil exports. Any disruption involving the facility would likely have significant implications for global oil markets.

Fresh Military Escalation Raises Market Anxiety

The latest rise in oil prices follows a new round of U.S. military strikes against Iranian targets. According to reports, the attacks focused on military infrastructure, surveillance systems, communication networks, and air defense assets. Iran responded with reported attacks against U.S. military facilities in the region, further increasing concerns that the conflict could broaden.

While investors initially welcomed reports that U.S. operations had concluded, optimism faded as both sides continued exchanging threats and military actions.

President Trump stated that additional strikes could occur and expressed frustration with the pace of negotiations aimed at reopening the Strait of Hormuz and resolving broader regional tensions.

Hormuz Remains the Key Risk

The Strait of Hormuz continues to be the primary concern for energy markets.

The strategic waterway handles a substantial share of global oil and liquefied natural gas shipments. Any prolonged disruption could tighten global supplies and place additional upward pressure on energy prices.

Although concerns remain elevated, some market participants believe the global energy system is better positioned to absorb disruptions than during previous crises. Increased U.S. oil production, alternative export routes, and softer demand growth in major economies have helped prevent a more dramatic price surge.

Recent reports also indicate that oil shipments continue moving through the region under various arrangements, helping ease some supply concerns.

Why Prices Have Not Spiked Further

Despite months of conflict and supply disruptions, crude oil prices have remained relatively contained compared to historical geopolitical crises.

Analysts point to several factors supporting market resilience, including strategic petroleum reserves, weaker-than-expected demand growth from China, strong U.S. production, and ongoing inventory drawdowns that have helped stabilize supply chains.

However, the market remains highly headline-driven. Any indication of direct attacks on major energy infrastructure or further restrictions on shipping through Hormuz could quickly change investor sentiment.

Outlook

Oil markets remain caught between competing forces. On one side, geopolitical risks continue to support higher prices as military tensions intensify. On the other, concerns about slowing global demand and evidence that some energy flows continue through the region are limiting the magnitude of price increases.

With diplomatic efforts still underway but military activity escalating, crude prices are likely to remain volatile in the near term. Investors will continue watching developments surrounding Kharg Island, the Strait of Hormuz, and broader U.S.-Iran negotiations for clues about the next major move in energy markets.