Oil surges to seven month high as Iran war hits supply

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airstrikes on Iran continued for a second day. The jump took prices to a seven month high.Investors are concerned about disruption from one of the world’s most crucial oil producing regions. Missile and drone attacks hit fuel ships in the Middle East on Sunday, while more than a hundred other ships were effectively stopped by the troubles.President Trump has suggested problems could drag on for at least a month, saying he expected war with Iran to last for four weeks.US stock futures also fell, pointing to a drop of around 1pc for major indexes on Wall Street when trading begins on Monday.Oil-producing countries have pledged to pump more crude into the market as they aim to take advantage of a price surge triggered by the crisis in Iran.The Organisation of Petroleum Exporting Countries (Opec) said on Sunday it would jack up output by 206,000 barrels a day, almost two-thirds more than the expected increase.The cartel said the move would “provide an opportunity for the participating countries to accelerate their compensation”.Opec, a producer cartel that includes Saudi Arabia, Iraq, Kuwait and the United Arab Emirates (UAE), took action amid fears that oil prices could ultimately race towards $100 a barrel, up from $73 on Friday.If the price spirals towards $100, the ructions would be on par with the chaotic early-pandemic trading of April 2020.Traders will be gauging the prospects for continued oil shipments continuing through the Strait of Hormuz, a crucial shipping lane where roughly a fifth of oil and gas destined for the world market passes through. If the Strait closes, the price will likely surge.Tankers are still moving through the Strait but in much smaller numbers, with 150 vessels anchored just outside its mouth. Three vessels have already been hit off the coast of Oman, although the circumstances remain unclear.Iran has not formally announced a closure of the Strait, and Donald Trump claimed on Sunday the US had sunk nine Iranian naval vessels raising questions about Tehran’s ability to enforce any blockade. But the uncertainty and threat is still expected to bring shipping in the area to a halt.Risks were heightened after the Yemen-based Houthi militia, which is backed by Tehran, said it would restart attacks on shipping in the Red Sea corridor.Amid fears of higher petrol prices in Britain, Howard Cox of campaign group FairFuelUK urged Rachel Reeves to freeze fuel duty for the remainder of parliament in Tuesday’s Spring Statement.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,874.50 -13.75 (-0.20%)Dow Futures48,856.00 -89.00 (-0.18%)Nasdaq Futures24,956.00 -69.25 (-0.28%)Russell 2000 Futures2,652.50 -5.40 (-0.20%)VIX21.44 +1.58 (+7.96%)Gold5,392.00 +80.40 (+1.51%)Trending tickersMDB MongoDB, Inc. 325.01 -3.46 (-1.05%)ASTS AST SpaceMobile, Inc. 86.92 +7.73 (+9.76%)BRK-B Berkshire Hathaway Inc. 480.17 -24.78 (-4.91%)F Ford Motor Company 13.39 -0.70 (-4.97%)BBAI BigBear.ai Holdings, Inc. 4.1000 +0.1400 (+3.54%)PortfolioSign in to access your portfolioSign inTop gainersEMAT Evolution Metals & Technologies Corp. 10.16 +2.19 (+27.48%)OCUL Ocular Therapeutix, Inc. 10.98 +2.04 (+22.82%)AXTI AXT, Inc. 46.32 +8.42 (+22.22%)AAOI Applied Optoelectronics, Inc. 102.51 +18.28 (+21.70%)LASR nLIGHT, Inc. 67.69 +11.50 (+20.47%)Top losersTPB Turning Point Brands, Inc. 108.51 -28.48 (-20.79%)AES The AES Corporation 14.21 -3.07 (-17.77%)AVAV AeroVironment, Inc. 208.32 -43.93 (-17.42%)ELF e.l.f. Beauty, Inc. 81.64 -10.41 (-11.31%)ADT ADT Inc. 7.12 -0.90 (-11.22%)Most activeNVDA NVIDIA Corporation 182.48 +5.29 (+2.99%)ONDS Ondas Inc. 10.67 +0.59 (+5.85%)NOK Nokia Oyj 8.26 +0.54 (+6.99%)F Ford Motor Company 13.39 -0.70 (-4.97%)PLUG Plug Power Inc. 1.8100 +0.0200 (+1.12%)Top economic eventsEarnings eventsMy earnings eventsEarnings events