Oil price up nearly 2% in early Asian trade

Oil prices increased by nearly 2% early on Thursday, March 5, in Asian trading. This rise is due to ongoing concerns about supply disruptions linked to the conflict in the Middle East. At approximately 11:10 PM GMT (which is 7:10 AM in Singapore), West Texas Intermediate was priced at $76.05 per barrel, reflecting a rise of 1.86% from Wednesday's close of $74.66 per barrel. Meanwhile, Brent North Sea Crude, which finished the previous day at $81.40 per barrel, was not actively traded. The conflict between the US and Israel with Iran, which began on Saturday, has effectively halted shipping through the Strait of Hormuz. This strait is crucial, as it carries about one-fifth of the world’s shipborne crude oil and significant amounts of liquefied natural gas (LNG). President Donald Trump reassured the public on Tuesday that the US Navy is prepared to escort oil tankers and that the US will provide insurance to shippers. On Wednesday, the Omani navy rescued 24 crew members from a Malta-flagged container ship that was hit by missiles while passing through the strait, according to state media. This incident was the fourth reported attack in the region within just 24 hours, with projectiles landing near three other vessels off the coasts of the UAE and Oman. Iran’s Revolutionary Guards announced on Wednesday that they have “complete control” over this vital waterway.