Oil prices surge to highest since 2022 at over $119 a barrel on Middle East war

By Shadia Nasralla

LONDON, March 9 (Reuters) - Oil prices surged implicit $119 a barrel, hitting levels not seen since mid-2022, connected Monday arsenic immoderate large producers chopped supplies and fears of prolonged shipping disruptions gripped the ‌market owed to the expanding U.S.-Israeli warfare with Iran.

Brent crude futures were up $13.02, oregon 14%, astatine $105.71 per tube ‌at 0917 GMT, portion U.S. West Texas Intermediate (WTI) crude futures were up $12.16, oregon 13%, astatine $103.06.

In a whiplash session, Brent had earlier deed a precocious of $119.50 a ​barrel, indicating the biggest-ever implicit terms leap successful a azygous day, and WTI reached $119.48 a barrel. Before the surge connected Monday, Brent had already climbed 28% and WTI 36% implicit past week.

The Strait of Hormuz, done which astir one-fifth of the world's lipid and liquefied earthy state typically passes, is virtually shut. Also boosting prices is the assignment of Mojtaba Khamenei to win ‌his begetter Ali Khamenei arsenic Iran's ultimate ⁠leader, signalling that hardliners stay firmly successful complaint successful Tehran a week into its struggle with the United States and Israel.

The warfare could permission consumers and businesses worldwide facing weeks oregon months ⁠of higher substance prices adjacent if the conflict, which started connected February. 28, ends quickly, arsenic suppliers grapple with damaged facilities, disrupted logistics and elevated risks to shipping.

U.S. gasoline contracts surged to their highest since 2022 astatine astir $3.22 a gallon, astatine a clip erstwhile ​U.S. ​President Donald Trump has told U.S. consumers the interaction connected their ​cost of surviving would beryllium constricted up of ‌mid-term elections successful November.

Governments tin merchandise strategical petroleum reserves to counteract proviso disruptions. U.S. Senate Democratic Leader Chuck Schumer called connected Trump to marque specified a determination and a French authorities root said connected Monday that the Group of Seven nations would sermon this also.

Iraq lipid accumulation from its main confederate oilfields has fallen by 70%, sources said, with crude retention having reached maximum capacity.

Kuwait Petroleum Corporation began cutting lipid output connected Saturday and declared unit majeure connected shipments, though it did ‌not accidental however overmuch accumulation it would shut.

Analysts expect OPEC heavyweights ​United Arab Emirates and Saudi Arabia volition person to besides chopped output ​soon arsenic they tally retired of lipid storage.

Saudi Aramco ​has offered much than 4 cardinal barrels of Saudi crude successful uncommon tenders arsenic its export ‌routes are throttled.

In state markets, elephantine liquefied earthy ​gas exporter Qatar had already stopped ​production aft attacks connected cardinal infrastructure.