Crude Oil Climbs Above $72 as Middle East Tensions Shake Global Markets

Global crude oil prices surged to their highest level in seven months on Friday, driven by rising geopolitical tensions in the Middle East.

Brent crude, the international benchmark, settled at $72.87 per barrel at market close, its strongest level since late July 2025. Earlier in the session, it briefly climbed to $73.50 before easing slightly. US West Texas Intermediate finished the day at $67.02 per barrel.

The rally followed indirect negotiations between the United States and Iran held in Geneva on Thursday. The talks came amid heightened tensions after US President Donald Trump ordered a military buildup in the region over the long-running nuclear dispute.

Oil prices jumped by more than one dollar per barrel during the discussions, reflecting market concerns that negotiations were faltering. Washington has reportedly maintained a firm position demanding that Iran halt uranium enrichment entirely, a stance that has complicated diplomatic progress.

President Trump expressed frustration with the pace of the talks, warning that force could become an option if diplomacy fails.

The situation intensified on February 28 when US and Israeli forces carried out what they described as pre-emptive missile strikes on Iranian targets. Tehran responded with retaliatory attacks on American military bases across the Middle East, with explosions reported in Abu Dhabi, Manama, Doha, Kuwait and Riyadh.

Authorities in Bahrain confirmed that a missile struck near the US Navy’s Fifth Fleet headquarters in Juffair, further deepening fears of a broader regional conflict.

Energy analysts say the escalating crisis poses a significant risk to global supply, warning that any disruption to production or shipping routes could push prices higher. Some experts describe the current situation as creating an asymmetric upside risk, meaning prices could rise sharply if tensions worsen.

Market watchers are also monitoring Saudi Arabia’s pricing strategy. There are indications that the kingdom may raise its April crude prices to Asian buyers for the first time in five months, supported by stronger demand from India as it seeks alternatives to Russian supplies.

Meanwhile, sources told Reuters that the Organization of Petroleum Exporting Countries and its allies are expected to review production levels at their March 1 meeting. The group may consider increasing output by 137,000 barrels per day in April after pausing supply hikes earlier in the year.

With diplomatic uncertainty and military tensions unfolding simultaneously, oil markets remain highly sensitive to further developments in the region.

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