Oil Extends Rally On Supply Disruption Fears

(RTTNews) - Oil prices continued to move higher on Monday as the U.S.-Israel war with Iran entered its third week, triggering the largest disruption to global oil markets in history.

Global oil supply could go down by 8 million barrels a day in March, or around 8 percent of worldwide demand, according to the International Energy Agency, which is coordinating the biggest emergency release of oil stocks since it was created in the 1970s during the Arab oil embargo.

Benchmark Brent crude futures were up 2.2 percent at $105.40 a barrel while WTI crude futures surged 1.7 percent to $98.49.

The last time oil traded above $100 when Russia attacked Ukraine in March 2022, and it stayed there till July, 2022.

Supply risks mounted after the U.S. attacked Kharg Island, Iran's most important oil export terminal in the Persian Gulf, while sparing vital oil infrastructure. U.S. President Donald Trump said that the U.S. may carry out more strikes on Kharg Island 'just for fun'.

Iran threatened escalation across the Middle East, with a drone strike already targeting an oil industry zone near the Port of Fujairah in the United Arab Emirates.

A strike on the heavily fortified United States embassy compound in Baghdad caused a fire and damage to the complex.

The closure of Hormuz has triggered a crisis of Liquified Natural Gas supply in the Southeast Asia. Both Saudi Arabia and the United Arab Emirates are now cut off from the global oil market.

The Trump administration has announced plans to reveal a new coalition to escort ships through the Strait of Hormuz and warned NATO's future is at risk if the allies don't assist in opening the ley oil shipping route.