financetom
World
financetom
/
World
/
Oil prices rise as Iran conflict widens
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Oil prices rise as Iran conflict widens
Mar 11, 2026 6:34 AM

TOKYO, March 5 (Reuters) - Oil prices rose on Thursday amid growing concern over the prolonged closure of the Strait of Hormuz, as the U.S.-Iran war chokes off vital Middle East oil and gas flows while production facilities limit output.

Brent crude was trading up $1.67, or 2.05%, at $83.07 per barrel by 0141 GMT. U.S. West Texas Intermediate crude rose $1.94, or 2.60%, to $76.60.

The U.S.-Iran war widened on Wednesday after a U.S. strike hit an Iranian warship off Sri Lanka and U.S. Senate Republicans backed President Donald Trump's military campaign against Iran.

They voted against a bipartisan resolution aiming to stop the air war and require Congress to authorise hostilities against Iran.

Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries, has cut output by nearly 1.5 million barrels a day for lack of storage and an export route, officials told Reuters.

Qatar, the biggest liquefied natural gas producer in the Gulf, declared force majeure on gas exports on Wednesday, with sources saying a return to normal production volumes may take at least a month.

Shipping via the Strait of Hormuz, a key conduit for nearly a fifth of global energy consumption, has ground to a near-halt for the fifth day during the war on Iran and Tehran's retaliation.

Britain's maritime trade operations agency reported a large explosion heard and seen by the master of a tanker anchored 30 nautical miles southeast of Kuwait's Mubarak Al Kabeer, with a small craft later seen leaving the area.

Iran has refrained from targeting most critical energy infrastructure while keeping shipping risk extremely elevated, J.P. Morgan said in a client note, estimating that about 329 oil vessels are stuck in the Gulf.

"Storage capacity in the Gulf Cooperation Council countries and prevailing energy prices are limiting factors on the length of the U.S. campaign," it added.

The reference was to the political and economic alliance of Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.

Most of the oil fields can restart within days, with full capacity typically restored within two to three weeks, J.P. Morgan said.

"While operators must gradually rebuild reservoir pressure, particularly in Iraq, where water injection is critical, the primary constraint today is logistics rather than geology."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
PRECIOUS-Gold prices fall as Fed projects just one rate cut in 2024
PRECIOUS-Gold prices fall as Fed projects just one rate cut in 2024
Jun 13, 2024
* Gold above $2,300/Oz suggests buyers active in dips - analyst * Gold hitting $3,000/Oz looks out of reach -industry experts * U.S. consumer prices were unexpectedly unchanged in May (Recasts and updates prices as of 0924 GMT) By Harshit Verma June 13 (Reuters) - Gold prices fell on Thursday after the U.S. Federal Reserve projected just one interest rate...
GLOBAL MARKETS-Bulls on comedown after record highs, car makers skid on tariffs war
GLOBAL MARKETS-Bulls on comedown after record highs, car makers skid on tariffs war
Jun 13, 2024
* World stocks index dips after hitting record high * Fed pushes rate cut bets back to Dec but inflation cools * European shares lower as tariffs and politics weighs * Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, June 13 (Reuters) - World stocks retreated from record highs on Thursday, as the feel-good factor of slowing U.S. inflation...
Bulls on comedown after record highs, car makers skid on tariffs war
Bulls on comedown after record highs, car makers skid on tariffs war
Jun 13, 2024
LONDON (Reuters) - World stocks retreated from record highs on Thursday, as the feel-good factor of slowing U.S. inflation and somewhat comforting Fed signals made way for a fresh bout of politics- and tariffs-induced weakness in Europe. Bond market borrowing costs and the dollar rose after the Fed nudged back rate cut expectations, but with the moves only partly reversing...
Stock Futures Mostly Up Pre-Bell Ahead of Producer Price Index Report; Asia Rises, Europe Down
Stock Futures Mostly Up Pre-Bell Ahead of Producer Price Index Report; Asia Rises, Europe Down
Jun 13, 2024
07:17 AM EDT, 06/13/2024 (MT Newswires) -- The benchmark US stock measures were mostly pointing higher before Thursday's open as traders gear up for the release of last month's producer price index report. The S&P 500 futures edged up 0.1% and the Nasdaq added 0.6% in premarket activity, while the Dow Jones Industrial Average declined 0.4%. The majority of Asian...
Copyright 2023-2026 - www.financetom.com All Rights Reserved