- Brent crude prices climbed more than US$1 a barrel on Thursday in a volatile session as investors swing between focusing on escalating U.S. attacks on Iran and hopes for a resolution that may resume shipping in the Strait of Hormuz.
- Brent futures rose US$1.48, or 1.63 per cent, to US$92.22 a barrel.
- U.S. West Texas Intermediate (WTI) crude gained 43 US cents, or 0.51 per cent, to US$84.89 a barrel.
- The U.S. carried out two hours of attacks on Iran at 8:00 p.m. ET, the U.S. Central Command said.
- On Wednesday, the U.S. and Saudi Arabia attacked Iran-backed paramilitary forces in Iraq, the first time that Saudi had publicly joined U.S. air strikes, in retaliation for drone attacks on Saudi oil targets launched from Iraq.
- The Caspian Pipeline Consortium, quoted by the Russian news agency Interfax, said on Thursday that it had suspended oil loadings following a drone attack on a tanker.
- Vandana Hari, founder of oil market analysis provider Vanda Insights, stated, Europe is waking up to the news of the U.S. attacks, so buying up.
- Lin Ye, vice president of commodity markets, oil, at Rystad Energy, remarked that Trump’s chit hard rhetoric caused the price spike immediately but looks like the market has fully priced (that) in and (is) considering the TACO possibility right now.
Oil prices surged on Thursday as Brent crude rose over $1 amid escalating U.S. attacks on Iran, with Brent futures climbing 1.63% to $92.22 a barrel. The U.S. Central Command confirmed two hours of strikes at 8:00 p.m. ET, raising concerns over supply disruptions in the region.24
On Wednesday, the U.S. and Saudi Arabia launched attacks on Iran-backed paramilitary forces in Iraq, marking the first public involvement of Saudi Arabia in U.S. air strikes. This retaliation followed drone attacks on Saudi oil targets originating from Iraq.5
“Europe is waking up to the news of the U.S. attacks, so buying up,” said Vandana Hari, founder of oil market analysis provider Vanda Insights. Meanwhile, the Caspian Pipeline Consortium announced a suspension of oil loadings after a drone attack on a tanker, further heightening supply concerns.67
“Trump’s ‘hit hard’ rhetoric caused the price spike immediately but looks like the market has fully priced that in and is considering the ‘TACO’ possibility right now,” noted Lin Ye, vice president of commodity markets, oil, at Rystad Energy. The market remains volatile as investors weigh the implications of military actions against potential resolutions in the Strait of Hormuz.8
“Brent crude prices rose by $1.48 to $92.22 a barrel, while U.S. West Texas Intermediate gained 43 cents to $84.89. The Caspian Pipeline Consortium has suspended oil loadings following a drone attack, further tightening supply amid geopolitical tensions.”
The Globe and Mail
