Oil Tops $105 as Middle East War Keeps Prices Elevated
Oil prices rose on Monday as escalating tensions in the Middle East and fresh supply disruptions heightened concerns over global crude availability amidst the worsening energy crisis.
International benchmark Brent crude traded at $105.60 per barrel. US benchmark West Texas Intermediate (WTI) rose 0.9% to $98 per barrel, compared with $96.84 in the previous session.
Prices were supported by ongoing geopolitical tensions in the Middle East and concerns over potential supply shortages.
US President Donald Trump said conditions were not yet suitable for a deal with Iran to end the ongoing attacks, adding that he had called on several countries to help secure shipping through the Strait of Hormuz. Trump said some countries had agreed to assist.
However, Australia and Japan said they had no plans to send naval vessels to the region to help safeguard the waterway. German Foreign Minister Johann Wadephul also reiterated that Germany would not take part in any international military operation related to the tensions in the Strait of Hormuz and the attacks on Iran.
Iran’s Foreign Minister Abbas Araqchi told US broadcaster CBS that Tehran had never sought a ceasefire and was ready to defend itself for as long as necessary.
Separately, oil and gas production across northern Iraq’s Kurdish region has been completely halted following attacks on energy infrastructure, the regional government said Sunday.
In a statement, the Kurdish Regional Government’s Ministry of Natural Resources said all oil and gas fields, refineries and energy facilities in the region had been targeted by “outlaw militias.”
These “terrorist attacks” resulted in the full suspension of production, preventing any quantities of oil from being available for export, the ministry added.
Meanwhile, the International Energy Agency (IEA) said it would release 400 million barrels of emergency oil stocks held by its member countries to help stabilize markets.
Under the plan, IEA members in Asia and Oceania will make their stocks available to the market immediately, while members in the Americas and Europe are expected to begin releasing supplies later this month.
Despite the planned release of strategic reserves, ongoing tensions, strong rhetoric from regional actors, and production disruptions, prices have remained above $100. Trump Says he Thinks Iran’s New Supreme Leader Alive but ‘Damaged’
