Global oil prices rose for the fourth consecutive day on Tuesday, with Brent crude on track for its largest monthly gain on record and U.S. crude futures heading toward their strongest monthly increase since 2020. The surge is driven by supply constraints resulting from the widening conflict in the Middle East.
Brent crude futures for May delivery climbed by $2.26, or 2%, to reach $115.04 per barrel at 00:02 GMT, after hitting their highest level since March 19 in the previous session. The May contract expires Tuesday, while the more actively traded June contract stood at $108.96.
U.S. West Texas Intermediate (WTI) crude futures for May rose by $3.10, or 3%, to $105.96 per barrel, marking their highest level since March 9.
Iran’s effective closure of the Strait of Hormuz—through which roughly one-fifth of global oil supply and a significant volume of liquefied natural gas shipments typically pass—has pushed Brent crude up by 59% so far in March, the largest monthly increase on record. Meanwhile, WTI has gained 58% this month, its biggest rise since May 2020.
Highlighting the risks to maritime energy supplies amid the war involving Iran, the United States, and Israel, Kuwait News Agency, citing Kuwait Petroleum Corporation, reported that the crude oil tanker Al-Salmi, with a capacity of two million barrels, was allegedly attacked by Iran at the Port of Dubai. Officials also warned of the potential for oil spills in the region.
— Reuters
