Oil Spikes 20% Past $100: Mideast Cuts Drive Prices to Post-War High

TradingKey - U.S.-Iran tensions escalate as a wave of crude oil production cuts hits the Middle East, driving international oil prices to a four-year high.

On March 9 (GMT+8), crude oil production cuts in the Middle East fueled a continued surge in international oil prices. This morning, WTI crude oil ( USOIL) prices soared by more than 20% to a high of $111, marking the highest level since the 2022 Russia-Ukraine war.

WTI Crude Oil Price Chart, Source: TradingView

On March 8 local time, Iran officially announced that Mojtaba Khamenei, the son of the late Supreme Leader Ali Khamenei, has become the new Supreme Leader of the Islamic Republic of Iran. In response to this change, U.S. President Trump openly expressed his opposition, stating, "Without my approval, the new Supreme Leader of Iran will not remain in power for long."

The U.S. President's actions have further exacerbated tensions in the Middle East, with market concerns over worsening imbalances in crude oil supply and demand providing strong support for international prices. Currently, the geopolitical conflict has disrupted oil transportation, and the Middle East has implemented "precautionary production cuts." Notably, Iraq's oil production has plummeted by more than 50%.