Oil soared more than 5% on fear of a full-blown Middle East war

International crude oil benchmarks surged over 5% on Thursday, October 3, 2024, as escalating tensions in the Middle East heightened fears of potential supply disruptions. 

Brent jumped $3.72 or 5.03% to close at $$77.62/barrel.

WTI surged $3.61 or 5.15% to settle at $73.71/barrel.

Market concerns are intensifying amid speculation that Israel could target Iranian oil infrastructure, potentially triggering severe retaliatory actions. Analysts warn that such escalation could prompt Iran to block the Strait of Hormuz or launch strikes against key Saudi oil facilities, both of which would have far-reaching consequences. The Strait of Hormuz, through which roughly 20% of the world’s daily oil supply passes, remains a vital chokepoint, and any disruption could significantly exacerbate the current volatility in energy markets.

Written by: Muhammad Hafiz