Oil prices rise on Thursday

Oil prices rose on Thursday as Iran intensified attacks on oil and transport facilities across the Middle East, heightening fears of prolonged conflict and disruptions to shipments through the Strait of Hormuz.

Brent crude futures increased by $4.47, or 4.86 per cent, to $96.45 per barrel by 0733 GMT after briefly touching $100 earlier in the session, while US West Texas Intermediate crude gained $4.05, or 4.64 per cent, to $91.30.

Prices remained volatile after Brent reached $119.50 per barrel on Monday, the highest level since mid-2022, before falling when US President Donald Trump said the war involving Iran could end soon.

Analysts at ING said the lack of de-escalation in the Gulf meant disruptions to oil flows through the Strait of Hormuz could persist, adding that sustained price declines would depend on restoring shipments through the key waterway.

Security concerns also rose after two foreign tankers carrying Iraqi fuel oil caught fire in Iraq’s territorial waters following attacks by unidentified vessels, with an initial investigation by Iraqi officials indicating explosive-laden boats from Iran struck the ships.

The International Energy Agency agreed to release a record 400 million barrels of oil from strategic reserves to curb price spikes following the US-Israeli war with Iran, including 172 million barrels from the United States’ Strategic Petroleum Reserve. Analysts warned the move could provide only temporary relief if disruptions to shipments through the Strait of Hormuz continue or production halts emerge in parts of the Middle East.

Concerns over supply shortages also grew after sources said China ordered an immediate halt to refined fuel exports in March to prevent potential domestic shortages linked to the conflict.

Attribution: Reuters