Crude Oil: Oil Prices Surge as More Middle East Energy Infrastructure Comes Under Attack

Oil prices rise as Iran and Israel take turns attacking key energy facilities, intensifying market volatility.

During Thursday’s early Asian trading session, the most active WTI futures contract rose as much as 3.4% to $98.69 per barrel.

Brent crude oil closed at around $107 per barrel on Wednesday; European natural gas benchmarks surged 6% on the same day.

Qatar Energy announced that following Iran’s attack, the world’s largest liquefied natural gas export plant in Ras Laffan Industrial City was “severely damaged.”

Earlier, Iran warned Gulf countries that certain energy facilities have now become “legitimate targets” after Israel attacked Iran’s South Pars gas field.

U.S. President Donald Trump stated that he was aware of Israel’s attack on the South Pars gas field in advance but does not want to launch further strikes on Iran’s energy infrastructure.

Trump also temporarily exempted a century-old shipping regulation to reduce transportation costs for oil, natural gas, and other bulk commodities within the United States.

At 6:29 a.m. Singapore time, May WTI crude oil rose 2.8% to $98.17 per barrel.

The April contract, which expires on Friday, increased by 2.9% to $99.09.

May Brent crude oil rose 3.8% on Wednesday, closing at $107.38 per barrel.