As worries about possible supply interruptions from the Middle East increased due to mounting fears of a potential US military strike on Iran, crude oil prices jumped dramatically on Thursday. Gains continued for a third session in a row as a result.

Nigeria's premium grade of petroleum, Bonny Light, was trading at roughly $69 per barrel. This was a reflection of the overall increase in the world's oil markets.

The price of US West Texas Intermediate crude increased by 92 cents, or 1.5%, to $64 a barrel. At $69.34 a barrel, Brent crude futures increased by 94 cents.

Both benchmarks reached their highest levels since September 29. They have gained roughly 5 percent since Monday. The rise was driven largely by heightened geopolitical tensions linked to President Donald Trump’s renewed pressure on Iran to curb its nuclear programme.

The rally followed reports that the US president is considering military action against Iranian security forces and leadership. This move was seen as an attempt to spark internal unrest and potentially destabilise the current government in Tehran.

On Wednesday, Trump urged Iran to return to the negotiating table. He warned that “time is running out” before the United States takes military action.

He also suggested an enhanced US Navy involvement in the region. He claimed that a "massive armada" was approaching Iran and that it was "ready, willing, and able to swiftly accomplish its mission, swiftly and violently, if necessary."

Approximately ten US Navy boats are presently stationed in the Middle East, a US official stated on Wednesday. The naval presence in the Caribbean prior to the capture of former Venezuelan leader Nicolás Maduro is equal to this force.

Iran is one of the top ten oil-producing nations in the world and is vital to the world's energy markets. About 20% of the world's supply of crude oil passes through the Strait of Hormuz, a key chokepoint.

The nation ranks as OPEC's fourth-largest producer. Every day, it pumps about 3.2 million barrels.

According to analysts, the growing impasse has clearly increased the risk premium associated with oil prices. This occurred especially when the White House vowed to stop supporting Iraq, another significant oil exporter, and reaffirmed its strong attitude this week.

According to a letter from DBS Bank, "unplanned outages in Kazakhstan and the US due to Winter Storm Fern have also had a temporary impact, but the dominant factor driving oil prices remains the geopolitical risk premium surrounding Iran and the wider Middle East."