Oil prices climbed on Thursday as renewed attacks on shipping in the Gulf and the Strait of Hormuz heightened fears of further disruptions to global crude supplies.
Brent crude futures rose $2.28, or 2.28%, to $102.28 a barrel, while U.S. West Texas Intermediate crude gained $1.66, or 1.88%, to $89.94.
The latest gains came despite a decision by the International Energy Agency to accelerate the release of emergency oil stocks and prioritise diesel supplies as governments respond to tight fuel markets. Traders remained focused on the security of shipments through the Strait of Hormuz, a major route that handled about one-fifth of global oil and fuel shipments before the conflict.
Shipping risks have increased in October, with tanker attacks reaching their highest level since the conflict began. The disruptions are raising concerns that crude and refined fuel supplies could become more difficult and expensive to move, keeping upward pressure on prices.
Oil markets are also receiving support from reduced U.S. production as Hurricane Isaias approaches offshore production areas in the Gulf of Mexico. Several producers have curtailed operations ahead of the storm, adding another potential constraint to supply.
The sustained rise in crude prices could add to inflationary pressure globally, particularly through higher transport and energy costs, while increasing costs for countries that depend heavily on imported petroleum products.
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