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Doha, Qatar: Oil prices spiked to nearly $120 per barrel before falling back slightly on Monday as Iran continued its attacks on several Arab countries, threatening production and shipping in the Middle East and pummelling financial markets.
The price for a barrel of Brent crude, the international standard, surged to $119.50 per barrel but was later trading at $112.98. West Texas Intermediate, the light, sweet crude oil produced in the US, spiked to $119.48 per barrel but fell back to $110.17.
About 15 million barrels of crude oil – approximately 20 percent of the world’s oil – are typically shipped every day through the Strait of Hormuz, according to independent research firm Rystad Energy, stated Al Jazeera.
The threat of Iranian missile and drone attacks has all but stopped tankers from travelling through the strait, which is bordered in the north by Iran, carrying oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.
Iraq, Kuwait and the UAE have cut their oil production as storage tanks fill due to the reduced ability to export crude.
