Oil closes above $114 as war fears resurface

Oil drilling rigs

Oil futures ended today, May 4, sharply higher, amid fears of renewed large-scale fighting in the Middle East, following weeks of cautious calm in the region.

At settlement, Brent crude futures for July delivery rose 5.80%, or $6.27, to $114.44 a barrel. WTI crude oil futures for June delivery also increased by 4.4%, or $4.48, to $106.42 per barrel.

The OPEC+ announced on May 3 that it had raised its production targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.

On the other hand, the US Central Command announced that US Navy destroyers equipped with guided missiles carried out operations in the Arabian Gulf, noting that two commercial ships flying the American flag had successfully crossed the Strait of Hormuz, but the Iranian Revolutionary Guard denied the validity of these statements.

The command later confirmed that Iran launched missiles and drones toward commercial vessels in the area, but the US Navy intercepted them and sank several of Tehran's small boats. However, a South Korean cargo ship was damaged.