Oil price rises above $115/bbl after Iran’s attacks on Middle East energy facilities

Oil prices rose on Thursday, March 19, 2016, with benchmark Brent rising to its highest in more than a week to more than $115 a barrel.

This comes after Iran ‌attacked energy facilities across the Middle East following Israel’s strike on its South Pars gas field.

Brent futures were up $6.08, or 5.7%, at $113.46 a barrel by 0814 GMT, after climbing almost $8 to the highest since March 9 to a session high of $115.10.

U.S. West Texas Intermediate crude rose 57 cents, or 0.6%, to $96.89 a barrel, after earlier gaining almost $4 to trade at $100.02.

WTI has been trading at its widest discount to Brent in 11 years due to ⁠releases from U.S. strategic reserves and higher freight costs, while renewed attacks on Middle Eastern energy facilities boosted support for Brent.

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“Escalation in the Middle East, precise attacks on oil infrastructure, and the death of Iranian leadership all point to a prolonged disruption in oil supplies,” Phillip Nova analyst Priyanka Sachdeva said in a note.

Iran issued evacuation warnings before its attacks for several oil facilities across Saudi Arabia, the ⁠UAE and Qatar, as it prepared to retaliate for strikes on its own energy infrastructure in South Pars and Asaluyeh.

President Donald Trump said late on Wednesday that Israel carried out ⁠the South Pars gas field attack, but the United States and Qatar were not involved.

Trump added that Israel would not further attack Iranian facilities in South Pars unless Iran attacked Qatar, and warned that the United ⁠States would respond if Iran acted against Doha.

Earlier, Reuters reported that Trump’s administration is considering deploying thousands of U.S. troops to reinforce its operation in the Middle East, in preparation for the next steps of its campaign against Iran.

The Star