"Brent crude tops $110"…Global oil prices jump on Middle East energy clashes

Wall Street: "It could hit $120 within days"

On the 18th (local time), global oil prices surged after Israel bombed Iran’s largest gas field and Iran continued retaliatory attacks on energy facilities in neighboring countries.

Brent crude, the global benchmark, settled at $107.38 a barrel for May delivery, up 3.8% from the previous session. U.S. West Texas Intermediate (WTI) crude for April delivery settled at $96.32 a barrel, up 0.1%.

After the settlement, Brent extended gains to the $111-a-barrel range around 4:48 p.m. Eastern time. It marked the first time since the 9th—nine days ago—that Brent traded in the $110s intraday. WTI futures also briefly set an intraday high of $100.5 a barrel.

The spike was directly driven by the escalation over energy facilities in the Middle East. Israel struck South Pars, Iran’s largest gas field, and a complex of natural-gas processing facilities in Asaluyeh on Iran’s southwestern coast that is directly linked to the field. While Israel has previously attacked Tehran’s fuel tanks, this was the first time it has targeted Iran’s energy production facilities.

In retaliation, Iran’s Islamic Revolutionary Guard Corps warned of attacks on energy facilities in Saudi Arabia, the United Arab Emirates (UAE) and Qatar, urging immediate evacuation. Iran in fact launched missile strikes that day on a Qatari area densely packed with gas facilities; Qatar accounts for 20% of global liquefied natural gas (LNG) supply.

The developments have heightened fears of worsening supply disruptions as the Strait of Hormuz—through which about 20% of the world’s seaborne crude supply passes—is effectively blocked.

Ole Valbye, an analyst at Sweden’s SEB, said: "Attacks on Iran’s South Pars and its gas fields are pushing up oil and gas prices, and if strikes on energy infrastructure expand further, prices will continue to rise."

Citibank forecast Brent could climb to $120 a barrel within days. It also projected supply disruptions of 11 million–16 million barrels per day through April.

Park Su-rim, Hankyung.com reporter paksr365@hankyung.com