Crude oil futures ended sharply higher on Thursday as escalating tensions in the Middle East raised concerns about potential trade and supply disruptions. Middle East tensions persist as Israel has rejected a ceasefire offer from Hamas. According to reports, Israeli forces attacked the southern border city of Rafah after Prime Minister Benjamin Netanyahu rejected a ceasefire proposal. Meanwhile, supply concerns have risen following a report from the U.S. Energy Department that forecast domestic crude production will grow slower than originally expected this year.
Benchmark crude oil futures for March delivery surged $2.36 or about 2.1% to settle at $76.22 a barrel on the New York Mercantile Exchange. Brent crude for April delivery rose $2.42 or about 3.05% to $81.63 per barrel on London's Intercontinental Exchange.