Oil continues to rise in price, Brent soared to $100 again amid Iranian attacks

Oil prices rose on Thursday, with Brent temporarily returning to the $100 mark, amid intensified Iranian attacks on oil and transport facilities in the Middle East, raising fears of a protracted conflict and disruptions to oil supplies through the Strait of Hormuz, UNN reports with reference to Reuters.

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Brent crude futures rose $4.47, or 4.86%, to $96.45 a barrel by 07:33 GMT (09:33 Kyiv time), having earlier reached $100 a barrel, while US West Texas Intermediate crude rose $4.05, or 4.64%, to $91.30.

On Monday, Brent crude oil price reached $119.50 per barrel, the highest level since mid-2022, and then fell after US President Donald Trump announced a quick end to the war with Iran.

"Prepare for the oil price to reach $200 per barrel, because the oil price depends on regional security, which you have destabilized," a representative of the Iranian military command said in his address to the United States on Wednesday.

There are no signs of de-escalation in the Persian Gulf, and as a result, no end to disruptions in oil supplies through the Strait of Hormuz is in sight, ING analysts said on Thursday.

"The only way to achieve a sustained reduction in oil prices is to establish oil supplies through the Strait of Hormuz," the ING report said. "Otherwise, market highs are yet to come."

Two foreign tankers carrying Iraqi fuel oil were attacked by unknown assailants in Iraqi territorial waters, causing them to catch fire, Farhan al-Fartousi, director general of the General Ports Company, told Reuters on Wednesday.

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An initial investigation by Iraqi security services showed that the tankers were attacked by explosive-laden boats from Iran.

The International Energy Agency (IEA) agreed to release a record 400 million barrels of oil to help curb soaring prices after the start of the US-Israeli war against Iran. The US is providing the bulk of this quota - 172 million barrels - from its strategic petroleum reserve.

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"The IEA's release of oil reserves may only be a temporary solution, as disruptions to oil supplies through the Strait of Hormuz and a significant halt in production in some Middle Eastern countries could lead to a long-term supply deficit," said Tina Teng, market strategist at Moomoo ANZ.

ING analysts noted that there are concerns about how quickly oil can reach the market and whether there will be enough to meet consumer needs before supplies through the Strait of Hormuz are restored.

According to sources on Thursday, China imposed an immediate ban on refined product exports in March as another step to prevent a potential domestic fuel shortage caused by the US-Israel war against Iran.

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