Oil Prices Surge as Iran War Deadline Looms

The Iran war has had a significant impact on oil prices, with WTI Crude and Brent crude futures surging about 50% since its start. The War Powers Resolution, a federal law that limits the President's power to engage in international military hostilities without Congressional authorization, is set to expire on May 1.

The resolution requires that any war be authorized by Congress for 60 days, and President Donald Trump has announced a ceasefire extension but has not formally notified Congress until March 2. Many Democratic lawmakers have argued that Trump launched the war against Iran without legal authority.

ING Research raised its oil price forecasts on Tuesday, predicting that ICE Brent will average $104 per barrel in the second quarter, up from $96 previously. Warren Patterson, Head of Commodities Strategy at ING, stated that even if oil flows through the Strait of Hormuz resume in May and June, they will likely remain below pre-war levels for most of the year.

The United Arab Emirates announced its exit from the Organization of the Petroleum Exporting Countries (OPEC) effective from May 1, which could also put additional pressure on oil prices.