Oil jumps over 3% as military situation in Middle East worsens

Oil drilling rigs

Oil prices rose today, March 17, affected by renewed attacks on energy infrastructure in the Middle East, deepening concerns about the outlook for global supplies in the absence of any prospect for a quick resolution to the war, which has entered its third week.

Brent crude futures for May delivery rose 3.20%, or $3.21, to $103.42 a barrel. WTI crude oil futures for April delivery also rose by 2.90%, or $2.71, to $96.21 a barrel.

US President Donald Trump’s call to allies to send warships to secure navigation in the Strait of Hormuz were met with outright European rejection. Germany asserted that this is not its war, while French President Emmanuel Macron stressed that his country would not participate in operations to break the blockade of the strait until hostilities have ended.

Despite attempts by White House economic advisor Kevin Hassett to reassure markets that the conflict would last for weeks, not months, and his indication that some tankers had begun crossing the strait, analysts at Cavendish Bank and OANDA confirmed that the risks remain and that oil prices could continue to rise.