Oil prices rose today, but were on track for their first weekly decline since February 9, as US President Donald Trump extended a pause in attacks on Iran’s energy infrastructure. Investors remain cautious about the prospects for a ceasefire in the month-long conflict.
Brent crude futures increased by $1.87, or 1.73 percent, to $109.88 a barrel by 10 a.m. GMT. US West Texas Intermediate (WTI) futures were up $1.57, or 1.66 percent, at $96.05 a barrel.
The Brent benchmark has surged 52 percent since February 27, the day before US and Israeli strikes on Iran began, though it fell 2.1 percent over the week. WTI has risen 43 percent since the war started but dropped 2.3 percent during the same period.
“Despite talks of de-escalation, oil is trading on war longevity, not just headlines. Any direct damage to oil infrastructure or prolonged conflict could force markets to rapidly reprice higher,” said Priyanka Sachdeva, analyst at Phillip Nova.
President Trump extended his deadline to April 6 for Iran to reopen the Strait of Hormuz, warning of the destruction of Iran’s energy infrastructure if demands are not met. Thousands of US troops have been deployed to the Middle East, with Trump reportedly considering whether to use ground forces to seize Iran’s strategic oil hub on Kharg Island.
Iranian officials dismissed a 15-point US proposal, conveyed via Pakistan, as “one-sided and unfair,” according to Reuters.
The ongoing conflict has removed roughly 11 million barrels per day from the global oil supply. The International Energy Agency has described the situation as more severe than the combined shocks of the 1970s oil crises. “Every day flows through the Strait remain restricted, more than 10 million barrels of oil are missing … tightening the oil market further,” said UBS analyst Giovanni Staunovo.
Analysts at Macquarie Group said oil prices could fall quickly if the conflict eases soon but are expected to remain above pre-war levels. They also warned that prices could surge to $200 a barrel if the war continues until the end of June.
“With each passing day, market pressure is building. Asian countries are tapping buffer stocks and weighing demand adjustments,” said Mukesh Sahdev, founder and CEO of Australia-based consultancy XAnalysts.
The situation highlights the fragility of global energy markets and the ongoing impact of geopolitical tensions on oil supply and prices. Oil prices rose today but were on track for their first weekly decline since February 9 as US President Donald Trump extended a pause in attacks on Iran’s energy plants, though investors remain cagey about prospects for ceasefire in the month-old war.
