Oil rises 5% as military risks escalate

Oil prices rose on Thursday, recovering losses from the previous session, supported by investor concerns over a prolonged conflict in the Middle East and continued disruptions to supply through the Strait of Hormuz.

Brent crude futures for May delivery rose 5.66%, or $5.79, to $108.01 a barrel.

US West Texas Intermediate (WTI) crude futures for May delivery gained 4.61%, or $4.16, to $94.48 a barrel.

The rally came amid uncertainty over negotiations, as Iran’s foreign minister said Tehran was reviewing a US proposal to end the war but does not intend to engage in direct talks.

This was met with a sharply worded warning from US President Donald Trump, who urged Iran to show seriousness in reaching an agreement and said he could decide at any time to halt negotiations.

Meanwhile, Russia’s Kinef refinery—one of the country’s largest—halted operations after fires broke out following a drone strike, prompting Transneft to reroute exports away from damaged Baltic Sea terminals.