Iran’s Oil Minister Javad Owji said oil prices could hit $100 per barrel amid escalating war on the Gaza Strip.
“Oil prices are predicted to reach $100 per barrel in global markets,” Owji was quoted as saying on Friday by Shana, referring to the ongoing developments in the Middle East.
Crude prices leaped nearly 6%, with Brent posting its highest weekly gain since February, as investors priced in the possibility that the conflict in the Middle East could widen as Israel began ground raids inside the Gaza Strip on Friday.
Israel’s announcement marked a shift from an air war to ground operations to take out Hamas fighters a week after the Palestinian group’s deadly rampage in southern Israel.
Brent futures settled up $4.89, or 5.7%, at $90.89 per barrel. US West Texas Intermediate (WTI) crude gained $4.78, or 5.8%, to $87.69 a barrel.
Both benchmarks posted their highest daily percentage gains since April. Brent also recorded a weekly gain of 7.5%, its biggest such increase since February. WTI climbed 5.9% for the week.
Iran’s daily production at 3.3m barrels
Elsewhere in his remarks, Owji said Iran’s oil output surpassed 3.3 million barrels per day (bpd), hitting a record high since the US re-imposed sanctions on the country in 2018, after leaving the 2015 nuclear deal.
The figure indicates a surge of 4.7% compared to a Reuters survey, which put Iran’s daily output at 3.15 million bpd in September.