Oil rises 3% after Iran strikes Middle East energy facilities

Core Insights - Oil prices increased by up to 3% following Iranian attacks on energy facilities in the Middle East, marking a significant escalation in the conflict involving Iran, the U.S., and Israel [1]. Oil Price Movements - Brent futures rose by $3.69, or 3.44%, reaching $111.07, while U.S. West Texas Intermediate (WTI) crude increased by $2.29, or 2.38%, to $98.61 [2]. - Brent had previously closed up 3.8% on Wednesday, while WTI remained nearly flat, trading at its widest discount to Brent in 11 years due to U.S. strategic reserve releases and higher freight costs [2]. Impact on Energy Infrastructure - Iranian missile attacks on Qatar's Ras Laffan LNG processing site caused extensive damage, while the UAE shut down some energy operations in response to missile incidents [3]. - Saudi Arabia intercepted and destroyed four ballistic missiles aimed at Riyadh and thwarted a drone attack on a gas facility [4]. Regional Tensions and Market Outlook - The ongoing strikes on Middle Eastern energy infrastructure are expected to keep oil prices supported, with no signs of de-escalation in the conflict or a near-term reopening of the Strait of Hormuz [5]. - The U.S. administration is considering deploying thousands of troops to reinforce operations in the Middle East, which may include securing safe passage for oil tankers through the Strait of Hormuz [6].