Brent crude settled above $100 a barrel for the second straight session, ending the day at the highest level in more than three years as the conflict in the Middle East drags on and world leaders struggle to resolve the biggest disruption to the oil market in history.
The global benchmark rose to settle at $103.14 a barrel while US crude futures ended the session near $99 a barrel, the highest since July 2022.
Analysts and traders say that if Brent remains above the key psychological level of $100 a barrel, it could add to mounting pressure on President Donald Trump to end the war with Iran as energy costs soar. The higher cost of oil has begun to trickle down to consumers around the world with prices of everything from road fuel to cooking gas surging. It has also stoked volatility in equities markets and fueled inflation angst.
The global oil benchmark fluctuated earlier in the day after jumping 9.2% during the previous session, with price swings this week covering the widest range on record. In a sign that some shipping flows may be returning through the vital Strait of Hormuz, Reuters reported that Iran let two Indian-flagged liquefied petroleum gas carriers sail through the chokepoint.
That would be a significant milestone for investors, with trade through the strait — through which around one-fifth of the world’s oil and natural-gas exports flows — brought to a near standstill. Traders see reopening the waterway as critical to restoring balance in energy markets.
The US, meantime, said it had stepped up strikes on Iran to unprecedented levels. US President Donald Trump issued fresh warnings to the country after its new Supreme Leader Mojtaba Khamenei Mojtaba Khamenei said Hormuz should remain effectively shut and warned of other fronts in the war if the US-Israeli attacks continue.
In a bid to stabilize markets, the US issued its second temporary waiver for the purchase of sanctioned Russian oil. The latest measure, which is for crude loaded onto vessels before March 12, is broader than a directive earlier this month that only cleared India to boost buying. Meanwhile, in post-settlement trading, Axios reported the US had taken steps to make it easier for US businesses to buy Venezuelan oil and fertilizer.
Uncertainty surrounding the duration of the war on Iran has limited buying ahead of the weekend. Extreme volatility has forced dealers to scale back their risk exposure, pushing open interest in both benchmarks back to pre-conflict levels.
“Many traders appear to be positioning themselves defensively rather than risk becoming casualties of the next headline,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “Even though the downside is likely smaller than it was at the start of the year, it would still represent a meaningful move lower if some form of an off-ramp emerges.”
Several ships have been attacked this week in the Strait of Hormuz, increasing the odds that owners won’t pass through anytime soon.
Oil Prices
WTI for April delivery settled 3.1% higher at $98.71 a barrel.
Brent for May settlement settled up 2.7% at $103.14 a barrel.
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