Global oil prices saw little change on Monday, as investors balanced U.S. and Iranian threats to target energy facilities—which could escalate the war—against the release of millions of barrels of Iranian oil shipped by sea into global markets after Washington temporarily eased sanctions.
Brent crude futures fell by one cent to $112.18 per barrel as of 02:02 GMT, after settling on Friday at their highest level since July 2022. U.S. West Texas Intermediate (WTI) crude stood at $98.75 per barrel, up 52 cents, following a 2.27% gain in the previous session.
The spread of more than $13 per barrel between Brent and WTI is the widest in years.
“It is clear that momentum is tilted toward further gains, and testing recent highs near $120 is a realistic scenario this week,” the report noted.
U.S. President Donald Trump on Saturday threatened to “destroy” Iranian energy facilities if Tehran does not fully reopen the Strait of Hormuz within 48 hours, just one day after speaking about “ending” the war, now in its fourth week.
Meanwhile, Speaker of Iran’s Parliament Mohammad Bagher Ghalibaf said in a post on X on Sunday that critical infrastructure and energy facilities in the Middle East could face “irreversible destruction” if Iranian power plants are targeted.
For his part, International Energy Agency Executive Director Fatih Birol said on Monday that the crisis in the Middle East is “extremely severe” and worse than the combined oil shocks of the 1970s.
Oil prices remained largely stable on Monday after significant volatility earlier in the session.
The war has caused severe damage to major energy facilities in the Gulf and has nearly halted shipping through the Strait of Hormuz, through which about 20% of global oil and liquefied natural gas flows pass.
Analysts estimate losses of between 7 million and 10 million barrels per day in Middle Eastern oil production.
Three energy officials said Iraq has declared force majeure on all oil fields developed by foreign companies.
Iraqi Oil Minister Hayan Abdul Ghani said in a ministry statement that crude production at Basra Oil Company has been reduced from 3.3 million barrels per day to 900,000 barrels per day.
Traders said Indian refiners plan to resume purchases of Iranian oil, while other refineries across Asia are considering similar steps.
(Reuters)
