Oil jumps over $3 as investors assess Iran war future and tanker attacks
USO•Brent crude rose $3.42, or 3.61%, to $98.04 a barrel, while U.S. West Texas Intermediate gained $2.33, or 2.64%, to $90.45. Investors weighed the Iran war outlook and tanker incidents, with at least five vessels reporting incidents in the Gulf since Sunday.
1. Crude prices recover
Brent crude futures rose $3.42, or 3.61%, to $98.04 a barrel, and U.S. West Texas Intermediate crude gained $2.33, or 2.64%, to $90.45. Both benchmarks had fallen more than 8% on Wednesday, settling at their lowest levels since August 31.
2. Tanker incidents raise concern
At least five vessels reported incidents in the Gulf since Sunday, the UK maritime security agency UKMTO said. Tanker attacks are continuing at a pace close to October, when 35 vessels were hit, the most of any month of the war.
3. Conflict outlook shifts
Eurasia Group lowered its estimate of the chance of renewed U.S. strikes on Iran to 60% from 65%, and cut the probability of a deal to 10% from 20%. It raised the likelihood of a continued standoff to 30% from 15%, while saying escalation could push Brent to $110-$125 a barrel.
