Iran's Escalating Attacks Send Oil Prices Soaring to New Heights

Oil prices surged on Thursday as Iran escalated attacks on oil and transport facilities across the Middle East, sparking concerns of a prolonged conflict and potential disruptions to oil flows through the Strait of Hormuz.

The International Energy Agency (IEA) proposed releasing 400 million barrels of oil from strategic stockpiles, but analysts say this may only offer limited relief. The agency warned that the war in the Middle East is causing the biggest oil-supply disruption in the history of global markets.

Brent futures climbed $4.90, or 5.33%, to $96.88 a barrel by 1107 GMT, while U.S. West Texas Intermediate crude was up $4.27, or 4.89%, at $91.52. The IEA said Middle East Gulf countries have cut total oil production by at least 10 million barrels per day, a volume equalling almost 10% of world demand.

Goldman Sachs forecast Brent crude prices would average $98 per barrel in March and April before declining to $71 by the fourth quarter, but warned that in an upside-risk scenario, where flows through the strait are disrupted for a month, the March and April average could surge to $110.