Global oil prices surged Wednesday, hitting $110 per barrel, as strikes on energy infrastructure across the Middle East jolted markets, outweighing efforts by the White House to alleviate concerns about rising energy prices.
Brent crude, the global oil benchmark, rose as high as $110.90 per barrel and US crude hit $99.78 per barrel after reports that Iran had struck energy infrastructure. Fires were reported at key facilities in Qatar and aerial threats were intercepted in Saudi Arabia, following a warning from Iran’s Islamic Revolutionary Guard Corps.
That surge in oil prices extended gains from earlier, after Iran’s semi-official news agency said the South Pars natural gas fields and oil facilities in Asaluyeh had been struck. Earlier, Brent crude had risen 3.83% to settle at $107.38 per barrel. US crude oil had gained 0.1% to settle at $96.32 per barrel.
Brent crude climbed despite the White House temporarily waiving the Jones Act to allow foreign-flagged ships to transport commodities between US ports for the next 60 days.
Oil prices settle at 2:30 p.m. ET, marking a daily closing price. Oil continues to trade nearly 24/7 during the week, with a one-hour break in the afternoon.
“If you damage or destroy the energy infrastructure, well, that just immediately takes your timeline out further,” said Rob Thummel, senior portfolio manager at Tortoise Capital. “You’ve got to rebuild all that infrastructure, and that rebuilding process could take months, maybe years. So, I think that’s probably what the oil market is responding to.” (CNN)
