Oil rises, as thousands of US troops set to head to Middle East

Brent futures for May rose 91 cents, or 1%, to $109.64 a barrel as of 12:11 p.m. EDT (1611 GMT). U.S. West Texas Intermediate (WTI) crude futures for April, which expire on Friday, were up $1.29, or 1.3%, to $97.43. The more liquid May WTI futures contract was at $97.05, up 1.5%.

The U.S.-Israeli war on Iran escalated this week ​with attacks on key energy infrastructure in Iran and strikes by that nation on its neighbors, including Saudi Arabia, Qatar and Kuwait.

While President Donald ​Trump on Thursday said Israel would not repeat attacks on energy facilities, the market is starting to build in expectations ⁠of longer supply shut-ins following attacks and several weeks – at least – before the crucial Strait of Hormuz is reopened.

“The potential for a quick reversal in ​energy prices is unlikely because damage has been done to production,” said Ole Hansen, the head of commodity strategy at Saxo Bank.

Brent is on target to ​gain about 6% on the week. The front-month WTI is down around 1.3% from where it closed last Friday, however. WTI’s discount to Brent hit its widest in 11 years on Wednesday.

Three U.S. officials told Reuters on Friday that thousands of additional Marines and sailors are being deployed to the Middle East, with plans to depart the U.S. about three weeks ahead ​of schedule, according to one of the officials.

President Donald Trump said on Friday that there are no leaders left in Iran to talk to about the ​war as military strikes continue to target Iranian officials. The U.S. president also reiterated demands that Iran have no nuclear weapons.

Israel and Iran traded fresh attacks on Friday, following a ‌hit on ⁠an oil refinery in Kuwait.

U.S. Energy Secretary Chris Wright said removing oil sanctions on stranded waterborne Iranian cargoes would get supplies to Asia in three to four days, following similar comments from U.S. Treasury Secretary Scott Bessent on Thursday that made those plans clear. Bessent had said a further release of crude from the U.S. Strategic Petroleum Reserve was possible.

Wright said reserve releases will take place over the next few months.

ALL EYES ON HORMUZ

Analysts said prices will remain elevated as ​long as traffic through the crucial Strait ​of Hormuz, through which 20% ⁠of the world’s oil and LNG transits, is disrupted.

“As long as the flow of oil through the Strait of Hormuz remains restricted, the path of least resistance for crude prices remains to the upside,” UBS analyst Giovanni Staunovo said.

International ​Energy Agency (IEA) chief Fatih Birol warned in an interview with the Financial Times on Friday that it could ​take up to six ⁠months to restore oil and gas flows from the Middle East Gulf, and that politicians and markets were underestimating the scale of disruption.

The Trump administration is considering olans to occupy or blockade Iran’s Kharg Island to pressure Iran to reopen the Strait of Hormuz, Axios reported on Friday, which could also pressure supply.

Brent surged past $119 ⁠a barrel on ​Thursday, coming close to a March 9 peak, after Iran responded to an Israeli attack ​on a major gas field by knocking out 17% of Qatar’s LNG capacity, causing damage that will take up to five years to repair.