Crude oil prices climbed sharply on Thursday after briefly retreating earlier in the session, as renewed geopolitical tensions and tightening global inventories pushed traders back into risk pricing. Brent crude rose to $93.5 per barrel, while West Texas Intermediate (WTI) gained to $90.8 per barrel, reflecting heightened volatility across energy markets. The rebound followed fresh comments from U.S. President Donald Trump, who said the United States would strike Iran “very hard tonight” and move toward taking control of key Iranian oil infrastructure, including Kharg Island. The remarks quickly shifted market sentiment back toward supply disruption fears. Trump Comments Reignite Supply Shock Concerns Trump also stated that the U.S. would eventually assume control of Iran’s oil and gas infrastructure and key export points. Kharg Island, which handles around 90% of Iran’s crude exports, remains a central focus for traders assessing potential supply risks. How important is this site? Extremely. Any disruption to Kharg Island could significantly reduce Iran’s export capacity and tighten global oil availability. The renewed rhetoric followed an already fragile diplomatic backdrop, with Iran and the United States exchanging strikes and ceasefire conditions remaining uncertain. Inventory Data Signals Tightening Supply Beyond geopolitical risks, fresh data showed a tightening physical market that added further support to oil prices. U.S. crude stockpiles, including strategic reserves, fell by 15 million barrels last week. Over the past five weeks, inventories have dropped by more than 70 million barrels, marking the steepest drawdown since the 1980s. For the third month in a row, the U.S. has held the top spot for oil exports. The figure reached 10.5 million barrels per day in May. That trend points to rapidly tightening supply conditions in the United States. Elsewhere, fuel inventories in Singapore dropped to their lowest level since 2013, reinforcing concerns about global product shortages. Mixed Demand Signals From Asia Despite tightening supply, demand trends in Asia added a counterweight to bullish momentum. Chinese buyers are expected to significantly reduce Saudi crude imports in July, with shipments already falling to their lowest level in eight years. That decline signals weaker near-term demand from one of the world’s largest oil consumers. This contrast between tightening supply and softer demand created uneven price action during the session. Middle East Conflict Remains The Key Driver Geopolitical tensions continue to dominate market direction. The United States and Iran exchanged strikes for a second consecutive day, while ceasefire conditions remain fragile. Iran has warned it will respond more strongly if attacks continue, raising the risk of further escalation. At the same time, diplomatic efforts continue behind the scenes. A Qatari delegation reportedly left Tehran after late-stage negotiations aimed at reducing tensions. However, progress remains uncertain as military activity continues across multiple fronts, including Lebanon. Oil Market Outlook Oil prices now sit at the intersection of two opposing forces. On one side, tightening global inventories and escalating geopolitical risks support higher prices. On the other hand, weaker Chinese demand and uncertainty around long-term economic conditions limit upside momentum. If tensions around Iran’s oil infrastructure intensify further, particularly around Kharg Island or shipping routes, crude prices could move higher quickly due to supply disruption fears. However, any confirmed diplomatic breakthrough or easing of military activity could reverse recent gains just as fast.