US crude crosses $100 as Iran war triggers supply fears
What's the story
Crude oil prices have seen a slight uptick after weekend trading, with US crude prices crossing the $100 per barrel mark. The West Texas Intermediate rose over 2% to cross $100 per barrel while Brent gained a similar amount to cross $105 per barrel in early trading. The rise comes amid concerns over President Donald Trump's consideration of a military strike on Iran's key oil export facilities on Kharg Island.
Strategic decision
Trump orders military strikes on Iranian assets in Kharg Island
In a post on Truth Social, Trump announced that he had ordered strikes on Iranian military assets in Kharg Island but spared oil infrastructure. However, he warned if Iran keeps attacking tankers in the Strait of Hormuz, he would have to reconsider his decision. This warning was echoed by US Ambassador to the United Nations Mike Waltz who said Trump deliberately targeted military infrastructure for now but could target energy infrastructure later.
Export hub
Kharg Island is Iran's major oil export terminal
Kharg Island is a major oil export hub for Iran, with some 90% of the country's exports being shipped from there. In February, Iran produced 3.2 million barrels of oil per day. as per OPEC+. Most of this export from Kharg Island goes to Japan. A direct strike on Iran's export terminal on the island would immediately halt most of its crude exports and could trigger severe retaliation by Iran in the Strait of Hormuz or against regional energy infrastructure.