Oil jumps to highest settlement since July 2022 as more Mideast supply disrupted
Oil prices surged to a nearly four-year high due to supply disruptions in Iraq and escalating tensions in the Middle East.Summary
Oil prices experienced a significant jump on Friday, reaching their highest settlement since July 2022, driven by Iraq's declaration of force majeure on oilfields developed by foreign firms and the intensification of conflict in the Middle East, including increased U.S. military deployment. Brent futures settled up 3.26% at $112.19 a barrel, while U.S. West Texas Intermediate crude rose 2.27% to $98.32. The situation is exacerbated by attacks on energy infrastructure in Iran and neighboring countries like Saudi Arabia, Qatar, and Kuwait.
Experts, such as John Kilduff of Again Capital, believe the market is bracing for prolonged supply disruptions, particularly concerning the Strait of Hormuz. Ole Hansen of Saxo Bank noted that damage to production facilities makes a quick price reversal unlikely. U.S. President Donald Trump has taken a hard line, stating there are no leaders in Iran to negotiate with and reiterating demands regarding nuclear weapons.
Further complicating the situation, the U.S. is considering options to pressure Iran into reopening the Strait of Hormuz, including potential occupation or blockade of Kharg Island. The International Energy Agency warns that restoring oil and gas flows from the region could take up to six months, and attacks on Ukrainian oil facilities by Russia add to global supply concerns.
(Source：Channel Newsasia)