Brent and WTI top $100…first time in four years since the Ukraine war

Korea Economic Daily

Summary

International oil prices rose as April WTI climbed to $101.53 a barrel, breaking above $100.
Brent futures also hit $106.37 a barrel, extending the high-price trend of closing above $100 for two consecutive days.
Military tensions escalated after the U.S. struck Iran’s Kharg Island and Iran carried out a drone attack on the port of Fujairah, factors that helped lift oil prices.

Forecast Trend Report by Period

As the United States struck Iran’s crude-export hub, Kharg Island, global oil prices climbed, pushing West Texas Intermediate (WTI) above $100 as well.

WTI topping $100 marks the first time since 2022, when Russia invaded Ukraine.

According to CNBC and others on the 15th (local time), April WTI futures were trading at $101.53 a barrel, up 2.83% from the previous session.

WTI closed at $98.71 on the 13th, up 3.11% from the prior day.

Brent futures also surged 3.07% to $106.37 a barrel, jumping as high as $106.50 shortly after the open. Brent finished above $100 for two consecutive days last week.

The rally reflected the U.S. strike on Iran’s Kharg Island on the 13th. President Donald Trump said at the time that only military facilities were targeted and not oil facilities, but on the 15th he said, “If Iran continues to blockade the Strait of Hormuz, we could strike the oil infrastructure on Kharg Island.”

About 90% of Iran’s oil exports are handled via Kharg Island. Iran produces about 3.2 million barrels a day and exports about 1.5 million barrels.

Iran also escalated military tensions in retaliation, launching a drone attack on the port of Fujairah in the United Arab Emirates (UAE) on the morning of the 14th. Located on the Gulf of Oman along the UAE’s east coast, the port of Fujairah is connected to Abu Dhabi’s Habshan oil field and is also known as a “Hormuz bypass.”

Lee Seul-gi, Hankyung.com reporter seulkee@hankyung.com