Oil prices turn lower after Brent crude briefly touched $119, Israel reportedly to help open strait

On Thursday, after Israel indicated it was assisting in reopening the critical Strait of Hormuz route, U.S. oil prices declined.

The international benchmark Brent crude futures for May delivery fell about 2%, to $104.79 per barrel, after briefly rising above $119 earlier in the session. U.S. West Texas Intermediate (WTI) crude futures rose during the day but then dropped more than 3%, to $93.33 per barrel.

According to reports, U.S. oil prices declined after Israeli Prime Minister Netanyahu spoke to the media, stating that Israel is helping the U.S. reopen the Strait of Hormuz. Netanyahu also said Iran has lost its ability to enrich uranium and produce ballistic missiles. He further mentioned that the war could end faster than people expect.

U.S. Vice President Kamala Harris attended a meeting with members of the U.S. oil industry hosted by the American Petroleum Institute (API) on Thursday. API President and CEO Mike Sommers told the media after the meeting that reopening the Strait of Hormuz is a top priority for the Trump administration.

Sommers stated, “We need to open the strait. There are currently no alternatives.”

A White House official confirmed to the media that there are no current plans to restrict oil and natural gas exports.

The European natural gas benchmark—near-month prices at the Dutch Title Transfer Facility (TTF)—rose over 11%, to around €61 per megawatt-hour.

U.S. natural gas prices increased by 1.7%, trading at $3.116 per million British thermal units. Meanwhile, April-delivered NYMEX RBOB gasoline futures fell 1%, to $3.05 per gallon, after reaching a nearly four-year high.

Iran Attack

Qatar announced that Iran’s missile attack caused “widespread damage” to Ras Laffan Industrial City—the world’s largest liquefied natural gas (LNG) export facility.

QatarEnergy posted on social media that emergency crews had been dispatched to extinguish fires at Ras Laffan, adding that no casualties had been reported. QatarEnergy CEO Saad Sherida al-Kaabi said the attack damaged 17% of the country’s LNG export capacity.

Qatar’s Ministry of Interior later stated that the fire had been brought under control.

Qatar’s Foreign Ministry condemned the attack as a “dangerous escalation” and a “blatant violation of sovereignty,” warning that it threatens national security and regional stability. It also added that Qatar reserves the right to respond under international law.

Following Israel’s attack on an Iranian natural gas processing facility, Saudi Arabia and the UAE remain on alert.

After Iran’s drone strikes on Ras Laffan and Mesaieed industrial cities, Qatar suspended LNG production on March 2. According to Kpler data, Qatar is the world’s second-largest LNG exporter after the U.S., accounting for nearly one-fifth of global shipments.

Ongoing attacks on Middle Eastern energy infrastructure could deepen supply shocks triggered by Iran’s conflicts. The Strait of Hormuz, which handles about 20% of global oil supplies, remains largely blocked.

Randhir Jaspal, India’s External Affairs Ministry spokesperson, told foreign media via phone that India is in ongoing discussions with Iran to allow 22 ships to pass through the strait. Jaspal said two ships have already reached India through the route.

He also stated that India continues to increase energy imports from Russia.

Tom Croza, senior energy advisor at Gulf Oil, warned that if the conflict spreads beyond the Gulf, targeting other regions’ energy infrastructure such as Europe or the U.S., markets could face “all possibilities.”

He said, “Can you imagine what the world’s reaction would be if Iran attacked places outside the Persian Gulf, like refineries in Rotterdam or facilities somewhere in the U.S.? At that point, anything could happen, and oil prices could become extremely volatile.”

This shift would mark a move from limited geopolitical risks to a global supply shock, rendering traditional pricing models and risk assumptions obsolete. Concerns over widespread disruptions in refining and fuel distribution could trigger extreme volatility, with traders factoring in worst-case scenarios and rushing to secure supplies, causing oil and natural gas prices to surge sharply.

Dan Pickering, founder and CIO of Pickering Energy Partners, said, “We are moving from supply chain issues to potential supply problems. There’s a big difference. Supply chain issues can be resolved quickly.”

He added, “If you start affecting production capacity—whether LNG or oil—you suddenly can’t transport the same amount of goods because the output itself is gone. That’s an escalation.”