The cost of Brent crude oil surged past $119 a barrel on Thursday, marking a significant escalation in tensions after Iran targeted energy facilities across the Middle East following an attack by Israel on the South Pars gas field.
Brent futures increased by $7.39, or about 6.9%, reaching $114.77 a barrel by 1026 GMT (which is 5:26 p.m. in Japan). Earlier, prices spiked by more than $10, hitting a peak of $119.13—just shy of a 3.5-year high recorded on March 9.
Meanwhile, U.S. West Texas Intermediate crude rose 27 cents, or 0.3%, to $96.59 a barrel, after a nearly $4 jump the previous day, where it touched $100.02. Currently, WTI is trading at its widest margin compared to Brent in over a decade.
On Wednesday, the U.S. central bank decided to maintain interest rates, forecasting an increase in inflation as officials assessed the consequences of the ongoing conflict.
Attack and Counterattack
Late Wednesday, President Trump stated that Israel had launched an attack on Iran’s South Pars gas field, clarifying that neither the U.S. nor Qatar had any involvement. Notably, South Pars is part of the world’s largest natural gas field, shared by Iran and Qatar.
Trump went on to mention that Israel would refrain from further attacks on the South Pars site unless Iran initiated aggression against Qatar, adding that the U.S. would retaliate if Iran acted against Doha.
Qatar Energy reported on Wednesday that an Iranian missile strike on Ras Laffan, the location of Qatar’s primary LNG plant, resulted in “significant damage.”
Gasoline prices in Europe have risen to their highest levels in three years.
Saudi Arabia stated they intercepted and destroyed four ballistic missiles aimed at Riyadh, as well as thwarting a drone assault on a gas facility.
The SAMREF refinery in Yanbu, owned by Exxon, was attacked on Thursday. Although oil loading at the port was initially halted, operations have since resumed.
Kuwait Petroleum Corporation disclosed that a drone attack led to a limited fire at an operational unit in its Mina Al Ahmadi refinery.
Furthermore, earlier reports indicated that the Trump administration was considering deploying thousands of U.S. troops to bolster military efforts in the Middle East.
