Oil prices jump 6% to above $100 a barrel on US blockade of Iran

By Scott DiSavino

NEW YORK, April 13 (Reuters) - Oil prices jumped astir 6% to much than $100 a tube connected Monday aft the U.S. subject said it volition blockade ships leaving Iran's ports nL6N40V09S, portion Tehran threatened to retaliate against ‌its Gulf neighbours' ports, raising fears of much vigor proviso disruptions aft play bid talks broke down.

Brent futures were ‌up $5.76, oregon 6.1%, to $100.96 a tube astatine 11:15 a.m. EDT (1515 GMT), portion U.S. West Texas Intermediate (WTI) crude roseate $5.69, oregon 5.9%, to $102.26.

Prices for carnal crude barrels for contiguous transportation ​nL6N40W0KB to Europe were trading adjacent higher, with immoderate grades already astatine grounds highs of astir $150 a barrel.

If U.S. President Donald Trump "does so backmost his blockade menace with existent boats, a convergence betwixt the insubstantial and carnal markets whitethorn soon come," said Helima Croft, an expert astatine RBC Capital Markets.

Two Iranian-linked tankers nL1N40W056 exited the Gulf connected Monday arsenic different vessels began avoiding the Strait of Hormuz. The strait handles ‌about 20% of planetary lipid and liquefied earthy ⁠gas flows.

Saudi Arabia said it restored afloat lipid pumping capableness done the East-West pipeline nL1N40S100 to astir 7 cardinal barrels per time (bpd) aft harm from Iranian attacks. The kingdom, however, said nL1N40W081crude lipid income to China ⁠nL1N40W081 are acceptable to autumn successful May arsenic the warfare drives up prices and disrupts shipping.

HIGH PRICES HURT ENERGY DEMAND

The Organization of the Petroleum Exporting Countries (OPEC) nL6N40W0P6 lowered its forecast for satellite lipid request successful the 2nd 4th by 500,000 barrels per day, helping to pare earlier crude futures ​price ​gains.

Earlier successful the trading session, Brent futures were up much than $8 a tube ​and WTI was up much than $9.

India nL1N40W0BS said it ‌was apt to spot below-average monsoon rains for the archetypal clip successful 3 years successful 2026, stoking concerns astir workplace output and maturation successful Asia's third-largest system arsenic it battles ostentation driven by the war.

Inflation is besides a interest successful Europe wherever European Central Bank nL8N40W0XH Vice President Luis de Guindos said immoderate ECB involvement complaint emergence nL6N40W0LA volition beryllium connected however a war-fuelled surge successful the outgo of crude lipid and immoderate chemicals impacts different prices.

Central banks similar the ECB usage involvement rates to power inflation. Higher rates boost ‌consumer costs and tin dilatory economical maturation and request for oil.

European Union nL8N40W0Q2 ​Commission President Ursula von der Leyen said subordinate states indispensable coordinate connected vigor ​prices amid a 22 cardinal euro ($25.70 billion) summation successful fossil ​fuel bills since the commencement of the war.