Global oil prices surged on Monday as escalating hostilities in the Middle East rattled energy markets, raising fears of a prolonged supply disruption from one of the world’s most critical oil-producing regions.
US President Donald Trump said on Friday American forces had destroyed military targets on Iran’s Kharg Island, Tehran’s main oil export terminal, while warning he could also target the island’s petroleum infrastructure if Iran or its allies continue threatening shipping through the Strait of Hormuz, sending fresh tremors through oil markets.
The United States has temporarily eased sanctions on Russian oil by allowing countries to purchase cargoes already stranded at sea, as Washington seeks to contain a fresh surge in crude prices triggered by Middle East supply disruptions and fears over restricted energy flows through the Gulf.
Oil prices jumped on Thursday as Iran stepped up attacks on oil and transport facilities across the Middle East, raising fears of prolonged disruptions at the Strait of Hormuz.
OPEC Plus agreed to raise April oil output by 206,000 barrels per day, citing stable market conditions and falling inventories, while maintaining flexibility to gradually reinstate its 1.65 million bpd voluntary production cuts if needed.
Iran's Revolutionary Guards warned on Saturday that no vessel would be allowed to pass through the Strait of Hormuz, a chokepoint through which nearly a fifth of the world’s oil supply passes.
OPEC+ may consider a larger-than-planned output increase of 411,000 barrels per day at a meeting on Sunday, Reuters said quoting two sources close to the talks.
The US Energy Information Administration (EIA) forecasts in its October Short-Term Energy Outlook (STEO) that US crude oil production will average 13.5 million barrels per day (mmb/d) in both 2025 and 2026, both slightly higher than the agency’s September forecast.
