Oil prices look set to rise further on Monday, having closed before the weekend at their highest levels in nearly four years.

The climb comes after U.S. and Iranian threats to target energy facilities.

The conflict has nearly paralyzed shipping through the Strait of Hormuz, a conduit for nearly one fifth of the world's crude oil and liquified natural gas.

ZHDANNIKOV: "It's probably the most significant crisis since the Arab oil embargo in the 70s."

Dmitry Zhdannikov is an energy and commodities editor for Reuters in London.

"The main problem for the markets is that Iran has closed the Strait of Hormuz, through which 20% of global oil is transiting. But it's more than this; on top of that, there's been extensive damage to oil facilities in Saudi Arabia, in Qatar, in Kuwait, in the UAE. And even if the Strait of Hormuz reopens tomorrow, it will take much longer to resume normal supplies. We had an interview with the head of (the) QatarEnergy (CEO, Saad al-Kaabi) boss this week, and he said that essentially he may not be able to supply gas to his customers in Europe and Asia—to some of his customers in Europe and Asia—for three to five years. That tells you a little bit what's happening in a grand scheme of things."

On Friday, Brent futures for May settled up more than three percent at $112.19 a barrel, the highest since July 2022.

Posted by: AAngeles/NET25 News