Oil prices jump, WTI skyrockets to $104 amid heightened Mideast tensions

Oil prices jumped in early trading Monday, with US and global benchmarks climbing sharply amid heightened tensions in the Middle East and investor concern over potential supply disruptions through key shipping lanes.

As of 7:19 a.m. (Asia time) on April 13, West Texas Intermediate crude traded at $104.8 a barrel, up $8.24 or 8.53% in the last 10 minutes. Brent crude, the international benchmark, stood at $102.7, up $7.54 or 7.92%. Murban crude slipped 1.47% to $98.16. Natural gas rose 2.15% to $2.705.

Market anxiety

The gains reflect market anxiety over the security of oil flows through the Strait of Hormuz.

Traders have been closely watching developments following recent missile and drone exchanges in the region and uncertainty over how a US–Iran ceasefire could affect broader hostilities involving regional actors.

Brent futures, traded on the Intercontinental Exchange, and WTI contracts on the New York Mercantile Exchange, both surged as investors priced in a higher risk premium for Middle East supply.

Analysts say even the perception of a threat to shipping or production can trigger outsized price swings, especially after months of relatively stable output from major producers.

Insurance costs for tankers transiting the Gulf have also risen, adding to concerns about transport bottlenecks.

Despite diplomatic efforts to de-escalate tensions, markets remain on edge. Any disruption, or signals that oil exports from Gulf producers could be curtailed, is likely to keep prices volatile in the near term.