Oil prices rose by more than 7% on Thursday after US President Donald Trump's statement that the US could continue attacks on Iran, which raised fears of prolonged oil supply disruptions, UNN reports with reference to Reuters.
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Brent crude futures rose by $8.34, or 8.2%, to $109.50 per barrel at 11:39 GMT (14:39 Kyiv time). US West Texas Intermediate crude futures rose by $9.23, or 9.2%, to $109.35 per barrel, reaching their highest level since March 9.
Both benchmarks were heading for their largest gains, both in absolute and percentage terms, in three weeks, although they remained priced below the highs above $119 a barrel reached earlier in the conflict.
"We're going to hit them extremely hard over the next two or three weeks," Trump said. "We're going to take them back to the Stone Age, where they belong."
He did not provide any details on steps that could lead to the reopening of the Strait of Hormuz.
Trump announced that the US had achieved key goals in Iran02.04.26, 04:34
Markets are reacting to the absence of "clear mention of a ceasefire or diplomatic engagement" in the speech, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"If tensions escalate or risks at sea increase, oil prices could reach new highs as markets factor in potential supply disruptions," she added.
The UK, meanwhile, is holding a virtual meeting of 35 countries to discuss options for reopening the Strait of Hormuz. The United States does not plan to participate.
Britain gathers 35 countries for summit on Strait of Hormuz – Politico01.04.26, 19:16
On Wednesday, an oil tanker leased by QatarEnergy was hit by an Iranian cruise missile in Qatari waters, the Qatari Ministry of Defense said.
Some market participants said they had ceased operations with cargoes priced against the Middle East benchmark Dubai, which is typically used to price nearly a fifth of the world's oil supply, as ports inside the Strait of Hormuz cannot be used.
Gulf states consider new pipelines to bypass Strait of Hormuz - FT02.04.26, 14:47
Meanwhile, OPEC+ is likely to consider further oil production increases on Sunday, sources said. This move would allow OPEC members to increase production if the Strait of Hormuz is unblocked, but is unlikely to significantly increase supply before then.
In Russia, attacks on port infrastructure, pipelines, and refineries have reduced export capacity by 1 million barrels per day, or a fifth of the total capacity, creating conditions for a rapid reduction in production, the publication writes.
The head of the International Energy Agency also warned that supply disruptions would begin to affect Europe's economy in April, after the region had previously been protected by shipments purchased before the war began.
US fuel exports reached record levels in March
Meanwhile, according to Reuters, US refined product exports reached record levels in March, as the war with Iran forced Europe, Asia, and Africa to try to fill supply gaps caused by the near-total closure of the Strait of Hormuz.
US net refined product exports, including gasoline, naphtha, diesel, and jet fuel, reached about 3.11 million barrels per day in March, compared to about 2.5 million barrels per day in February, according to data from vessel tracking service Kpler. This is the highest monthly level in Kpler's history, dating back to 2017.
US fuel exports to Europe rose by almost 27% month-on-month to 414,000 barrels per day in March, while exports to Asia more than doubled to 224,000 barrels per day, Kpler data showed. Exports to Africa rose by 169% to 148,000 barrels per day, the data showed.
"These shipments reflect a global supply scarcity that is pulling barrels from the US Gulf Coast export hub," said Kpler analyst Matt Smith. "The longer the disruptions in the Strait of Hormuz continue, the greater the shifts will be on a global scale, forcing new trade routes to open."