Brent crude topped $101. 19 per barrel Monday, pushing the oil price above $100 as the Iran war disrupted production and shipping in the Strait of Hormuz. Monday at 9: 30 a. m. ET the move mattered because US retail gasoline rose and global markets showed sharp volatility tied to halted exports.
Brent Surpasses $101. 19 as Oil Price Tops $100
Brent crude was at $US101. 19 per barrel shortly after trading resumed on the Chicago Mercantile Exchange on Monday, up 9. 2% from a Friday settlement of $US92. 69. West Texas Intermediate was trading around $US107. 06 a barrel, 16. 2% higher than its Friday settlement of $US90. 90. Both benchmarks could rise or fall as market trading continues.
Strait of Hormuz Disruption Halts Roughly 15 Million Barrels Daily
Roughly 15 million barrels of crude — about 20% of the world’s oil — typically ship daily through the Strait of Hormuz, the independent research firm Rystad Energy said. The threat of Iranian missile and drone attacks has all but stopped tankers from transiting the strait, leaving about 200 tankers effectively stranded and driving higher insurance premiums for vessels linked to certain countries.
Attacks on Facilities and Cuts by Iraq, Kuwait and UAE Tighten Supply
Iran, Israel and the US have attacked oil and gas facilities since the war began, and Israel struck oil depots in Tehran plus four oil storage tankers and a petroleum transfer terminal over the weekend. Iraq, Kuwait and the United Arab Emirates have cut production as storage tanks fill because crude cannot be exported, compounding supply concerns.
US crude prices surged last week — US crude jumped about 36% and Brent rose roughly 28% during that period — contributing to the current spike that pushed prices above $100 per barrel for the first time since mid-2022. The last US crude trade above $100 was on June 30, 2022; Brent last reached $104 on July 29, 2022.
Domestic pump prices have already moved: a gallon of regular gasoline in the US rose to $US3. 45 on Sunday, about $US0. 47 more than a week earlier, while diesel averaged about $US4. 60 a gallon, roughly $US0. 83 higher for the week. Natural gas also climbed, ending Friday at $US3. 19 per 1, 000 cubic feet after an about 11% rise the prior week.
Some analysts and investors warn that sustained oil above $100 per barrel could strain the global economy by lifting energy costs and reducing consumer spending, the main engine of US demand. Mohammad Bagher Qalibaf, the speaker of Iran’s parliament, said the war’s impact on the oil industry would spiral and could soon make it harder to produce and sell oil.
Prices in other markets have also moved: in the UK motor fuels and benchmark gas prices rose this week, and the crisis has pushed insurance and logistics costs higher for vessels linked to particular nations.
Market trading continues; more details on price movement are expected when the Chicago Mercantile Exchange session resumes Monday at 9: 30 a. m. ET.
