Brent crude oil, the international standard, is trading at $115 U.S. a barrel and on track to achieve a record monthly increase.
So far in March, Brent crude has soared more than 55%, putting the global oil benchmark on track for its biggest one-month rise on record.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is trading at $101.15 U.S. a barrel currently, having risen a similar amount over the past month.
Crude prices have jumped sharply higher due to the ongoing war in Iran that has effectively closed the Strait of Hormuz where 20% of the world’s oil is shipped.
Over the weekend, Yemen’s Houthis entered the war on Iran’s behalf, launching missiles at Israel and escalating the conflict that threatens to engulf the entire Middle East.
In a new note to clients, analysts at Societe Generale (SCGLY) said that a prolonged supply disruption in the Middle East could push crude oil prices as high as $150 U.S. per barrel in April of this year.
Some Wall Street energy analysts are now warning that Brent crude oil could top $200 U.S. a barrel if the Strait of Hormuz isn’t reopened to commercial shipping by June of this year.
