By: Economy Middle east

Oil prices surged on Monday on persistent fears of supply losses resulting from shipping disruptions in the primary Middle East producing region due to the conflict between the U.S., Israel, and Iran.

Brent crude futures rose 0.59 percent to $109.67 a barrel by 8:34 UAE time. U.S. West Texas Intermediate crude futures slipped 0.33 percent to $111.17. In an earlier session, WTI gained $0.71, or 0.6 percent, to trade at $112.25 per barrel.

On Thursday, the last trading day before the Good Friday holiday, WTI settled up more than 11 percent and Brent surged nearly 8 percent in volatile trading. This marked their largest absolute price increase since 2020, as U.S. President Donald Trump pledged to persist with attacks on Iran.

The Strait of Hormuz, which transports oil and petroleum products from Iraq, Saudi Arabia, Qatar, Kuwait, and the United Arab Emirates, remains largely inaccessible due to Iranian attacks on shipping following the outbreak of war on February 28.

Seeking alternative crude sources

Due to the supply disruptions in the Middle East, refiners are seeking alternative crude sources, specifically physical cargoes in the U.S. and the U.K. North Sea.

Nonetheless, some vessels, including an Omani-operated tanker, a French-owned container ship, and a Japanese-owned gas carrier, navigated the Strait of Hormuz since Thursday, according to shipping data.

The conflict threatens to continue as Iran has officially informed mediators it is not prepared to convene with U.S. officials in the Pakistani capital, Islamabad, in the coming days. Efforts to establish a ceasefire have reached an impasse, the Wall Street Journal reported on Friday.

On Sunday, OPEC+, consisting of members of the Organization of the Petroleum Exporting Countries and allies such as Russia, approved a modest increase of 206,000 barrels per day for May.

However, that decision will remain largely theoretical, as several of the group’s key producers are unable to increase output due to the war.

Russian supply has been hampered recently by Ukrainian drone strikes on its Baltic Sea export terminal. Media reports on Sunday noted that its Ust-Luga terminal recommenced loadings on Saturday following prolonged disruptions.