Brent oil prices continue to rise amid Iran conflict with Brent reaching a 19-month high
The price of crude oil rose by about 7% Tuesday. This is the third time that oil prices have risen in a row. As the U.S./Israeli conflict with Iran intensifies, fuel shipments are disrupted, and 'fears' of further disruptions to Middle East oil supply and gas supplies increase.
Brent crude futures rose $5.70 or 7% to $83.44 per barrel at 1326 GMT, after reaching their highest level since July 2024, $85.12.
U.S. West Texas Intermediate Crude gained $5.03 or 7% to $76.26. It had previously reached its highest level since June, at $77.58.
Since Friday, when the attacks began, both contracts are up as much as 17 and 16 percent, respectively.
Since Israel's initial attacks on Iran, the U.S.-Israeli air campaign has expanded. Israel attacked Lebanon and Iran responded with strikes against energy infrastructure in Gulf nations and tankers in Strait of Hormuz. Through this waterway, a fifth of world oil and LNG is typically transported. After insurers canceled coverage, and shipping rates for oil and gas soared globally, tankers and container vessels are avoiding this waterway. Concerns grew after Iranian media reported that on Monday, a senior Iranian Revolutionary Guards officer said that the Strait of Hormuz was closed and warned that Iran would fire at any ship that tried to pass.
Iran's targeting of additional energy infrastructure in this region would pose a greater threat to the market. In a note, ING analysts warned that this could result in longer outages. State media reported on Tuesday that the United Arab Emirates authorities were dealing with a major fire at Fujairah Port. A shipping source said that the loading of Iraqi Kirkuk crude oil at Turkey's Ceyhan Port stopped on Tuesday. Oil and gas infrastructure has been shut down in several countries due to damage or precautionary measures since the attacks began across the region. Qatar stopped the production of liquefied natural gas, Israel stopped some gas fields production, Saudi Arabia closed its largest refinery, and output in Iraqi Kurdistan has virtually stopped.
On the gas market, prices of European and Asian LNG, British Gas, and benchmark Dutch contracts all rose. Analysts predict that oil prices will remain high in the coming days as markets continue to focus on the impact the conflict is having.
Bernstein raised its Brent oil price assumptions for?2026 to $80 per barrel, up from $65; however, it said that the prices could rise as high as $120-$150 if a prolonged conflict were to occur.
Futures of refined products are also on the rise?because Middle East production facilities are in danger.
U.S. ultra-low sulfur diesel futures rose 15% to $3.32 per gallon, after hitting a record high of two years on Monday. Futures for gasoline rose 6% to $2.50 per gallon.
After a jump of 18% on the previous day, European gasoil contracts gained 16%. They now stand at $1,025 per metric ton. (Reporting and editing by David Goodman. Additional reporting by Stephanie Kelly, Anushree mukherjee and Emily Chow from Singapore.
(source: Reuters)
