-- Crude oil prices jumped on Wednesday, with Brent crude reaching a one-month high, amid reports that the U.S. plans to extend its blockade of Iranian ports.
Brent crude at last look surged 3.2% to US$114.76/barrel and West Texas Intermediate crude climbed 3.5% to $103.40/barrel. U.S. President Donald Trump has instructed aides to prepare for an extended blockade, Reuters said in a Wednesday report, citing The Wall Street Journal.
The move will prolong supply disruptions in the Middle East despite a ceasefire in the war with Iran, as talks to end the war have stalled, the report said.
"The recent rise in oil prices has been driven by the Strait blockade. If Trump is prepared to extend the blockade, supply disruptions would worsen further and continue to push oil prices higher," Reuters quoted Yang An, an analyst at Haitong Futures, as saying.
Investors are also digesting market impacts of the United Arab Emirates' announcement to leave the Organization of the Petroleum Exporting Countries, according to the report. However, analysts do not see major near-term impacts so far.
"The United Arab Emirates' exit from OPEC+ formalises the organisations weaker cohesion, but the near-term impact is limited," Reuters quoted an ANZ Research note as saying. "The move reflects long-standing quota tensions, but prices are still being driven more by geopolitics, inventories and logistics than by institutional changes."