Brent crude futures stood at $108.20 per barrel, up $15.51 or 16.7%.
WTI crude was at $105.13, up $14.23 or 15.7%.
Earlier in the session, WTI hit $119.48 (a 31.4% spike), while Brent reached $119.50 (up 29%). These levels mark the highest since mid-2022, with prices on track for the biggest daily jump ever recorded. The conflict has blocked shipments through the Strait of Hormuz, a vital route for one-fifth of global oil.
Shipping has slowed dramatically due to security fears, hitting Asian buyers hard. Iraq’s southern oilfields output dropped 70% to 1.3 million barrels per day. Kuwait began production cuts and declared force majeure on exports.
Supply Disruptions and Geopolitical Tensions
Refineries face ongoing issues, including Bahrain’s BAPCO force majeure after attacks. A fire in UAE’s Fujairah zone and intercepted drones near Saudi fields add to risks. Iran appointed Mojtaba Khamenei as supreme leader, signaling hardliners’ control.
This complicates US regime change goals and fuels fears of prolonged Strait closure. Analysts warn upward pressure will persist unless tensions ease soon. WTI could climb to $120 or even $130 if disruptions continue.
Saudi Aramco offered prompt supplies, helping pare some gains. G7 and IEA discuss emergency reserve releases to stabilize markets. Global consumers face higher fuel costs, even if the war ends quickly.
Damaged facilities and logistics could sustain elevated prices for weeks or months.