Brent crude rose on Thursday, settling at $108.65 per barrel, up $1.27 or 1.18%. Earlier in the session, Brent reached a high of $119.13, approaching the 3½-year peak seen earlier in March. U.S. West Texas Intermediate (WTI) crude closed at $96.14 per barrel, down 18 cents or 0.19%, after earlier climbing nearly $4 to a session high of $100.02. WTI continues to trade at its widest discount to Brent in 11 years. Meanwhile, Middle East benchmarks Dubai and Oman premiums reached record levels at approximately $65 per barrel.
Market volatility was driven by overnight attacks on energy facilities in the Middle East. In response, U.S. authorities are considering measures to increase oil supply, including potential releases from the Strategic Petroleum Reserve and the possible removal of sanctions on approximately 140 million barrels of Iranian crude currently stranded on tankers. Analysts note that while this is a relatively modest quantity, it may help temper the recent price rally.
In regional developments, Israel targeted Iran’s South Pars gas field, though U.S. officials confirmed that the U.S. and Qatar were not involved. Iran’s missile strikes on Qatar’s Ras Laffan facilities, including a halt at Shell’s 140,000 barrel-per-day Pearl gas-to-liquids plant, caused extensive damage, contributing to a surge in European gas prices to three-year highs. Saudi Arabia intercepted several ballistic missiles and drone attacks on energy infrastructure, including the SAMREF refinery in Yanbu. Kuwait’s Mina al-Ahmadi refinery also suffered a limited fire after a drone attack. Oil loadings at the affected ports have since resumed.
Amid these tensions, the U.S. administration is reportedly weighing the deployment of additional troops to reinforce operations in the region, while domestic oil production from the Permian Basin continues to provide a counterbalance to global supply concerns.