Oil prices rise nearly 5%, Brent closes above $81

Oil drilling rigs

Oil prices rose by about 5% at the close of trading today, March 3, driven by disruptions to shipping traffic in the Strait of Hormuz as the conflict in the Middle East intensified.

Brent crude futures for May delivery rose 4.71%, or $3.66, to $81.40 a barrel. WTI crude oil futures for April delivery rose 4.70%, or $3.30, to $74.56 a barrel.

Oil prices continued to rise as the war raging in the Middle East widened, disrupting shipping through the Strait of Hormuz and increasing the cost of chartering giant tankers.

However, black gold came under some pressure due the rising dollar as demand increased for the US currency as a safe haven, amid fears of worsening inflationary pressures globally due to rising energy costs.