Crude Oil Nears $85 A Barrel As Iran War Intensifies

(MENAFN- Yolo Wire) Crude oil prices continue to surge higher as the war with Iran intensifies and widens across the Middle East.

West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is currently trading at $77.19 U.S. per barrel, up 8% in the past 24 hours.

Brent crude oil, the international standard, has also risen 8% in the last day to trade at $84.12 U.S. per barrel.

The latest spike in crude prices comes after Iran ordered the closure of the Strait of Hormuz and threatened to attack any ships that pass through the waterway that connects the Middle East with Asia.

About 20% of global oil consumption passes through the Strait of Hormuz with exports going mostly to China, India, Japan and South Korea.

Oil prices have risen more than 14% since March 1 as tanker traffic through the Strait has ground to a halt.

At the same time, natural gas prices have soared more than 70% in Europe after the country of Qatar ceased liquefied natural gas (LNG) production due to Iranian drone attacks.

British LNG futures contracts were up 30% on March 3. About 20% of global LNG exports come from the Middle East, mostly Qatar, and pass through the Strait of Hormuz.

Wall Street commodities strategists are racing to revise higher their oil price forecasts, warning that crude could surge above $100 U.S. per barrel in coming weeks.

Analysts at JPMorgan Chase (NYSE: $JPM) issued a note to clients on March 2 saying that crude oil prices could reach $120 U.S. a barrel this year due to the Middle East conflict.

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