Oil prices increased on 16 March in light of concerns regarding the security of oil facilities in the Middle East.
This follows US President Donald Trump’s appeal for international collaboration in safeguarding the Strait of Hormuz, a critical passage for global energy shipments, reported Reuters.
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By 04:00 GMT, Brent crude futures increased by $1.27 to $104.41 per barrel (bbl), building on a previous rise of $2.68 on Friday.
Meanwhile, US West Texas Intermediate (WTI) crude saw an increase of $0.54 to $99.25/bbl after gaining nearly $3 during the last session.
Both oil benchmarks have surged more than 40% this month, their highest levels since 2022.
Prices have fluctuated significantly since the US and its ally Israel initiated a military operation against Iran, dubbed Operation Epic Fury.
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By GlobalDataThe operation resulted in the death of Iranian Supreme Leader Ayatollah Ali Khamenei, prompting Tehran to launch retaliatory strikes at various sites across the Middle East.
The escalation has also disrupted shipments through the Strait of Hormuz, which carries around 20% of the world’s daily oil supply, prompting some refineries to suspend operations and tightening regional supply.
Over the weekend, President Trump warned of additional strikes on Iran’s Kharg Island, which manages roughly 90% of the country’s exports, following previous strikes on military targets there.
Shortly after the incidents at Kharg, Iranian drones targeted a significant oil terminal in Fujairah, UAE. According to four sources cited by the news agency, oil loading activities in Fujairah have resumed, although it remains uncertain if they have returned to normal levels.
Located outside the Strait of Hormuz, Fujairah is a critical point for exporting around one million barrels (mbbl) per day of the UAE’s Murban crude oil, which accounts for approximately 1% of global demand.
President Trump reiterated his demand for other nations to help secure this crucial energy route and mentioned ongoing discussions with several countries regarding its protection.
Although communication between the US and Iran continues, President Trump expressed scepticism about Tehran’s willingness to engage in meaningful negotiations to resolve the ongoing conflict.
The International Energy Agency has announced that more than 400mbbl from oil reserves would soon be released to the market in an effort to mitigate price surges caused by the conflict in the Middle East.
Immediate releases will come from Asian and Oceanian reserves, while European and US stocks are expected at the end of March.
