Oil prices rose sharply on Thursday, reaching their highest level in five months. Prices climbed by about 3% as worries increased that global oil supplies could be affected if the United States takes military action against Iran.

Brent crude went up by more than $2 to settle at around $70 per barrel. U.S. oil prices also increased, closing above $65 per barrel. Both benchmarks touched their highest levels in months.

The rise came as reports said U.S. President Donald Trump is considering steps against Iran. These options may include targeted strikes on Iranian security forces and leaders. The goal, according to sources, would be to weaken the government amid ongoing unrest.

Inside Iran, security forces have detained thousands of people in recent weeks. These actions followed protests that spread across the country earlier this month and were met with a harsh crackdown.

Traders are mainly worried about supply risks. Analysts say Iran, one of the largest members of OPEC, could respond to any attack by targeting nearby countries or blocking the Strait of Hormuz. This route is crucial, as nearly 20 million barrels of oil pass through it each day.

Meanwhile, the European Union announced new sanctions on Iran. The EU also labeled Iran’s Revolutionary Guard as a terrorist organization. Analysts say these developments have added a “risk premium” to oil prices, pushing them higher due to growing geopolitical tensions.

Global Factors Affecting Oil Markets

Officials said in Russia that they repeated an offer to hold peace talks with Ukraine. If a peace deal allows Russia to export more oil, global supplies could rise, which may lower prices. Russia is one of the world’s top oil producers.

In Kazakhstan, officials said they are working to restore full production at the Tengiz oilfield after recent disruptions. Analysts noted that supply problems there had already removed a large amount of oil from the market.

In the United States, oil production has started to recover after winter storms caused major output losses over the weekend.

The U.S. dollar remained weak against other major currencies. A weaker dollar often supports oil prices because oil becomes cheaper for buyers using other currencies.

President Trump said he plans to announce his choice for the next Federal Reserve chair soon, adding to market attention.