LONDON – Oil prices rose yesterday, extending gains that took Brent over US$100 a barrel in the previous session, as traders braced for deeper supply disruptions after Iran and the United States launched their largest attacks on shipping since their six-month-old conflict began.
Brent crude futures were up by 40 cents, or 0.4 percent at US$101.61 a barrel by 08:14 GMT. US West Texas Intermediate crude rose by 49 cents, or 0.51 percent, to US$96.54.
Brent prices have surged nearly 30 percent from lows touched in early August as a permanent agreement between the US and Iran to cease attacks never materialised and fighting resumed later in the month.
“The recent run-up in prices lays bare the market’s approach: this conflict will last longer than anticipated even a month ago, let alone at the beginning of the summer. If oil supply and exports are diminished, the oil balance remains tight and prices remain elevated,” PVM analyst John Evans said.
US President Donald Trump warned that the US may hit Iran’s Pickaxe Mountain, urging Tehran to be cautious, and said that the war will likely last beyond the November midterm elections.
REUTERS
