Oil jumps above $119 a barrel after Iran attacked energy facilities across Middle East
Benchmark Brent oil prices surged above $119 a barrel on Thursday following Iran’s attack on energy facilities in the Middle East in response to Israel’s strike on its South Pars gas field, marking a significant escalation in the ongoing conflict.
Brent futures LCOc1 rose by $7.39, or 6.9%, to reach $114.77 a barrel by 1026 GMT. At one point, Brent climbed over $10 to hit a high of $119.13, nearing the peak it reached on March 9, which was the highest in three-and-a-half years.
Meanwhile, U.S. West Texas Intermediate crude CLc1 increased by 27 cents, or 0.3%, to $96.59 a barrel, after briefly reaching $100.02. This surge in oil prices has widened the gap between WTI and Brent to the largest in 11 years.
The Federal Reserve opted to keep interest rates unchanged on Wednesday, foreseeing a rise in inflation as they assess the impact of the conflict on the economy.
ATTACKS AND COUNTER-ATTACKS
Israel launched an attack on Iran’s South Pars gas field, with President Donald Trump revealing that the U.S. and Qatar were not involved in the operation. South Pars is part of the world’s largest natural gas deposit, shared between Iran and Qatar, a key U.S. ally in the region.
Trump clarified that Israel would refrain from further attacks on Iranian facilities in South Pars unless Iran targets Qatar, warning of U.S. intervention if Iran poses a threat to Doha.
QatarEnergy reported extensive damage from Iranian missile strikes on Ras Laffan, home to Qatar’s core LNG plants, the largest globally.
European gas prices surged to levels not seen in over three years as tensions escalated.
Saudi Arabia intercepted and destroyed four ballistic missiles aimed at Riyadh and thwarted a drone attack on a gas facility.
An aerial attack targeted Saudi Aramco’s SAMREF refinery in Yanbu, disrupting oil loadings temporarily before resuming operations.
Kuwait Petroleum Corporation reported a drone strike on an operational unit at its Mina al-Ahmadi refinery, resulting in a limited fire.
Reports indicate that the Trump administration is contemplating deploying additional U.S. troops to reinforce operations in the Middle East amidst the escalating conflict.
