Oil rises more than 4%, closes above $99

Oil drilling rigs

Oil prices rose at the close of trading today, April 13, driven by the start of a US naval blockade on Iranian ships, which prompted Tehran to threaten retaliation against ports in the Middle East region, fueling concerns about a decline in global energy supplies.

Brent crude futures for June delivery rose 4.37%, or $4.16, to $99.36 a barrel, after touching $103.87 a barrel during the session.

WTI crude oil futures for May delivery also rose by 2.60%, or $2.51, to $99.08.

This came against the backdrop of the collapse of peace talks held last weekend between Iran and the US, and the start of a US Navy blockade on Iranian ships to prevent them from passing through the Strait of Hormuz.

In parallel, spot prices for North Sea crude jumped to a record high near $150 a barrel, reflecting the depth of the energy supply crisis in physical markets.

Given the sensitivity of electronic markets to real-time developments, oil futures prices reduced their gains after the US president indicated that he had received a call from the Iranian side in which Tehran expressed its desire to reach an agreement.

The repercussions of the war have begun to appear clearly on the global economy, as OPEC lowered its forecast for global oil demand in the second quarter of this year, while the head of the International Energy Agency (IAE) confirmed its readiness to act if further withdrawals from strategic reserves are required.

The IAE chief also confirmed that restoring supplies lost due to the war and attacks on energy facilities and seaports could take two years, at a time when OPEC revealed that its crude oil production had fallen by about 71% in March.