Oil prices retreated from the high levels recorded earlier yesterday but remain more than 15% higher at levels not seen since mid-2022. This is due to production cuts by some key producers and fears of long-term shipping disruptions due to the escalation of the American-Israeli war with Iran. Brent crude futures jumped $15.51, or 16.7%, to reach $108.20 per barrel, heading for the largest single-day gain ever. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures rose $14.23, or 15.7%, to $105.13. Disruptions in tanker traffic and increased security risks have already slowed shipping activity, making Asian buyers dependent on Middle Eastern oil particularly vulnerable as the crisis unfolds around the Strait of Hormuz, through which nearly a fifth of global oil supplies pass. Earlier yesterday, WTI crude rose 31.4% to a session high of $119.48 per barrel, while Brent climbed 29% to $119.50. Prior to yesterday's sharp surge, Brent had already risen 27% and WTI 35.6% last week.
