Oil prices rise sharply after attacks in Middle East disrupt global energy supply

[AP Photo]

Oil prices rose sharply yesterday as U.S. and Israeli attacks on Iran and retaliatory strikes against Israel and U.S. military installations around the Gulf sent disruptions through the global energy supply chain.

Traders were betting the supply of oil from Iran and elsewhere in the Middle East would slow or grind to a halt. Attacks throughout the region, including on two vessels traveling through the Strait of Hormuz, the narrow mouth of the Persian Gulf, have restricted countries’ ability to export oil to the rest of the world.

Prolonged attacks would likely result in higher prices for crude oil and gasoline, according to energy experts.

West Texas Intermediate, the light, sweet crude oil produced in the United States, was selling for $72.79 a barrel yesterday, up 8.6% from its trading price of about $67 on Friday, according to data from CME group.

A barrel of Brent crude, the international standard, was trading at $79.41 per barrel earlier yesterday, according to FactSet.

Roughly 15 million barrels of crude oil per day — about 20% of the world’s oil — are shipped through the Strait of Hormuz, making it the world’s most critical oil chokepoint.