By Isabel Wang and Jamie Chisholm
Warnings that global oil could reach $150 a barrel are resurfacing
The U.S. administration early Thursday took new steps to try quelling the surge in oil prices.
Global benchmark oil prices jumped back toward their highest levels in nearly four years early Thursday after President Trump threatened to “blow up” the world’s largest gas field following Israeli strikes on the Iranian site, triggering retaliatory attacks by Tehran on energy facilities across the Middle East.
The front-month Brent futures contract (BRN00) (BRNK26) climbed 5% to $113.03 a barrel on Thursday morning, after pulling back from a session high of $119.13. That was slightly below the $119.50 level reached on March 9, its highest since July 2022, according to FactSet data.
However, the price of U.S. West Texas Intermediate crude (CL.1) (CLJ26) was up only 0.9% to $96.35, widening the spread between Brent prices by the most since April 2020, according to FactSet data, as supplies through U.S. pipelines increase.
As crude prices rose, Treasury Secretary Scott Bessent said Thursday morning that the U.S. may consider an additional release of crude from its strategic reserves. He also said the U.S. might lift sanctions on Iranian oil. “In essence, we will be using the Iranian barrels against the Iranians to keep the price down for the next 10 or 14 days as we continue this campaign,” he said.
Rising oil prices reflect fears that Israel’s attack on Iran’s South Pars gas field earlier this week – and Tehran’s targeting of Persian Gulf energy facilities in response – signaled an escalation in the war that will further curtail oil and gas supplies.
“Warnings that oil [Brent] could reach $150 a barrel have resurfaced,” said Susannah Streeter, chief investment strategist at Wealth Club.
“Fears of a sustained energy shock have resurfaced after the escalation in the Iran war sent oil and gas prices soaring. The prospect of a longer, more drawn-out conflict is in sharp focus, as both sides ratchet up attacks on energy infrastructure,” Streeter added.
Qatar said on Wednesday that Iranian missile attacks on its core LNG processing operations at Ras Laffan caused “extensive damage” to ?the energy hub. Saudi Arabia said it destroyed four ballistic missiles launched on Wednesday toward Riyadh and an attempted drone attack on a gas ?facility, according to Reuters. The United Arab Emirates announced midweek that operations had been halted at its Habshan gas facilities.
U.S. President Donald Trump, in a social-media post late Wednesday, said that if Iran persists in targeting Gulf production, the U.S. would retaliate against the entirety of the South Pars Gas Field.
The halt of much of the Middle East’s gas production is causing a surge in benchmark natural-gas prices in Europe, on concerns that global demand will be chasing less supply. The Dutch TTF natural-gas contract for April (TFMIJ26) was jumping 21% on Thursday morning to EUR66.0 per megawatt hour, the highest since Russia’s full-blown invasion of Ukraine in early 2022.
Robert Schroeder contributed
-Isabel Wang -Jamie Chisholm
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03-19-26 0922ET
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