Khaberni - Oil prices saw little change on Monday, as investors balanced the American and Iranian threats targeting energy facilities, which could lead to an escalation of the war and the release of millions of barrels of Iranian oil transported by sea into global markets after Washington temporarily lifted sanctions.
Brent crude futures fell one cent to $112.18 a barrel by 02:02 GMT after stabilizing on Friday at their highest level since July 2022. U.S. West Texas Intermediate crude stabilized at $98.75 a barrel, up 52 cents, after a 2.27 percent gain in the previous session.
The difference of more than $13 a barrel between Brent and West Texas Intermediate crude is the widest in years.
"Clearly, the momentum leans toward further increases, and testing recent high levels near $120 is a realistic scenario this week."
President Donald Trump threatened on Saturday to "destroy" Iranian power stations if Tehran does not fully reopen the Strait of Hormuz within 48 hours, just a day after he spoke about "ending" the war, which entered its fourth week.
Mohammad Baqer Qalibaf, the speaker of the Islamic Consultative Council (Iranian parliament), stated on X yesterday, Sunday, that vital infrastructure and energy facilities in the Middle East might suffer "irreversible destruction" if Iranian power stations are targeted.
Fatih Birol, the executive director of the International Energy Agency, said today, Monday, that the crisis in the Middle East is "extremely severe" and worse than both oil shocks of the seventies combined.
Oil prices were largely stable on Monday after wide fluctuations earlier in the trading session.
The war inflicted severe damage on major energy facilities in the Gulf and nearly halted shipping operations through the Strait of Hormuz, through which about 20 percent of global oil and liquefied natural gas flows pass.
Analysts estimated a loss of between 7 million and 10 million barrels per day of oil production in the Middle East.
Three officials in the energy sector said that Iraq declared force majeure at all oil fields developed by foreign oil companies.
Iraq's Oil Minister Hayan Abdul Ghani said in a statement from his ministry that it was decided to cut crude oil production at the Basra Oil Company from 3.3 million barrels per day to 900,000 barrels per day.
Traders said that Indian refineries plan to resume buying Iranian oil, while refineries in other parts of Asia are considering such a step.
