Oil prices rose sharply on Friday as tensions rose in the Middle East and the United States launched more strikes against Iran, heightening concerns about energy supply flows through the Strait of Hormuz. Global benchmark Brent crude rose 7.8% to $109.03 a barrel after surging past the $111 mark. At the same time, WTI crude oil futures for near delivery next month recorded the largest premium ever over the February contract, rising to $111.54, an increase of 11.41%. Earlier in the session, U.S. crude oil prices topped $113 a barrel. Meanwhile, the spot price of Brent crude for immediate physical delivery soared to $141.36, reaching its highest level since the 2008 financial crisis, according to S&P Global data cited by CNBC. Spot prices reflect demand for goods scheduled for delivery within the next 10 to 30 days.The latest gains build on an earlier rebound in oil markets, which saw sharp price swings in the previous session. Prices initially fell as traders reacted to uncertainty ahead of Donald Trump’s address to the nation, but rebounded after his comments did little to ease concerns about the Strait of Hormuz. Earlier in the day, Brent crude fell $1.16 to $100 a barrel, while U.S. West Texas Intermediate crude fell $1.41 to $98.71 a barrel. After the speech, market sentiment shifted, with Brent crude oil prices rising more than 4% to $106 and WTI crude oil prices rising 3% to $103.Meanwhile, Iran continues to block the Strait of Hormuz, disrupting shipping flows in the strategically important passage that typically handles about a fifth of the world’s oil trade in peacetime.The ongoing U.S.-Israeli war against Iran is now approaching its fifth week, slashing global supplies by millions of barrels a day, pushing energy prices to multi-year highs and triggering fuel shortages in countries that rely on oil and gas being shipped through the now-blocked Strait of Hormuz.About 20% of the world’s oil flows through this strategic throat. In a speech Wednesday night, Trump vowed to hit Iran “extremely hard” in the coming weeks but stopped short of outlining plans to reopen the strait, instead suggesting other countries should shoulder the responsibility for restoring shipping lanes.
