(MENAFN) In a dynamic turn of events, global crude oil prices witnessed a notable upswing on Thursday, building on gains from the previous day. The escalating tensions surrounding the Israel-Gaza military conflict and disruptions at Libya's largest oil field due to protests have contributed to the surge in oil prices.

Brent futures, the global benchmark, saw a 0.42 percent increase, settling at USD78.58 per barrel, while the US benchmark West Texas Intermediate (WTI) crude rose by 0.55 percent, reaching USD73.10 per barrel. This follows a substantial 3 percent spike in both benchmarks on Wednesday, marking the first positive shift in five days, with WTI experiencing its most significant daily percentage gain since mid-November.

The disruption in oil production at Sharara, one of Libya's major oil fields with a regular output of up to 300,000 barrels per day, played a pivotal role in driving prices higher. Local protests forced a complete halt to production, amplifying concerns about the stability of global oil supply chains.

Simultaneously, the Middle East remains a hotspot of geopolitical tensions, with two explosions in Iran's south-central city of Kerman claiming almost 100 lives and injuring over 200 people.
The incident occurred during a memorial marking the fourth anniversary of the death of Iranian General Qassem Soleimani, adding further complexity to the regional landscape.

The ongoing Israel-Hamas conflict has also reverberated in the oil markets, with a drone strike in Beirut killing Hamas deputy leader Saleh al-Arouri. Palestinian militants and local security sources have attributed the attack to Israel, intensifying regional hostilities.

Additionally, concerns over shipping vessels in the Red Sea persist, as Yemen-based Houthi rebels continue their attacks on cargoes. The escalation of hostilities between Israel and Hamas in Gaza has heightened tensions in the region, impacting global oil transportation routes.

As the world grapples with these unfolding events, the interconnected nature of geopolitical conflicts and oil markets becomes increasingly evident. Investors, policymakers, and analysts are closely monitoring the situation, recognizing the potential implications for global energy security and economic stability. The multifaceted challenges posed by these developments underscore the need for a comprehensive understanding of the geopolitical landscape and its impact on the intricate dynamics of the oil market.

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