Oil gains more than 3%, fears grow over prolonged supply disruption

Oil prices are continuing to rise sharply today, driven higher by concerns over a prolonged disruption to supplies due to the war with Iran. At around 10:00 CET, North Sea Brent crude was up 3.3% at more than $84 a barrel. US West Texas Intermediate (WTI) crude was up 3.9% at nearly $78 a barrel.

Since US and Israeli attacks on Iran began over the weekend, the price of Brent crude has risen by around 16%. It briefly reached $85.12 on Tuesday, its highest level since July 2024.

The market’s main concern remains the flow of traffic through the Strait of Hormuz, which normally carries a fifth of the world’s oil supplies. Shipping through the waterway has practically ground to a halt. The effective blockade of the strait has disrupted oil supplies from producers in the Persian Gulf and forced producing countries to cut output.

Iran’s Revolutionary Guards reported an attack on an oil tanker in the northern Persian Gulf. The ship is on fire, according to their website.

According to sources cited by Reuters, the Chinese government has asked companies to suspend signing new contracts to export refined fuels. They are also supposed to try to cancel supplies that have already been agreed.

Oil prices in dollars per barrel (about 159 litres):