London, March 12 (SANA) – Oil prices settled up about 9% on Thursday, at their highest in nearly four years, as Iran stepped up attacks on oil and transport facilities across the Middle East, and vowed to keep the vital Strait of Hormuz shut.
Reuters reported that Brent futures settled at $100.46 a barrel, up $8.48, or 9.2%, after touching a session high of $101.60. U.S. West Texas Intermediate crude settled at $95.70, up $8.48 or 9.7%. Both contracts settled at their highest since August 2022.
“The market is seriously unbalanced and that will continue until the Strait is reopened and upstream and downstream operations return to normal. It will not happen quickly,” said Jim Burkhard, vice president and global head of Crude Oil Research at S&P Global Energy.
U.S. Energy Secretary Chris Wright told CNBC on Thursday that the U.S. Navy could not escort ships through the Strait of Hormuz now but it was “quite likely” that could happen by the end of the month.
Global oil prices are unlikely to hit $200 a barrel, Wright said, even as Iran continues to strike merchant ships.
Two fuel tankers in Iraqi waters were struck by explosive-laden Iranian boats, Iraqi security officials said on Thursday. An Iraqi official told state media the country’s oil ports have completely stopped operations.
The war is causing the biggest oil-supply disruption in the history of global markets, the International Energy Agency said on Thursday, a day after approving the release of a record volume of 400 million barrels of oil from strategic stockpiles.
Middle East Gulf countries have cut total oil production by at least 10 million barrels per day – a volume equaling almost 10% of world demand, the IEA said in its latest monthly oil market report.
Middle East refineries have also shut in 2.35 million barrels per day of crude and condensate refining capacity, consultants IIR said.
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