Oil extends gains above $101 amid Middle East escalation

Oil prices rose further on Thursday as unrest in the Middle East fuelled worries that global crude could face more interruptions, according to Mettis Global. Brent crude futures climbed 1.76% to $101.06 a barrel, while West Texas Intermediate fell $1.95, or 2.07%, to $96.13 by 09:37 am PST.

The move followed a U.S. military action that sank five Iranian oil tankers on Tuesday, after attempted strikes on an American warship. U.S. Central Command said the warship evaded the Iranian assault and that no American personnel were hurt. Goldman Sachs analyst Daan Struyven said crude could rise above $120 a barrel if attacks on shipping intensify, as the U.S.-Iran conflict heads into its seventh month.

Separately, the Wall Street Journal reported, citing CNBC, that top White House aides have talked privately with President Trump about the Iran conflict possibly running through the rest of his term. Andrei Constantin of TFP Software FZCO said traders are also watching for lower oil transit volumes, a wider regional escalation or risks to energy infrastructure, any of which could squeeze physical supply and lift prices.