INSTANT VIEW-Oil surges 20% as Iran war fuels supply fears

SINGAPORE, March 9 (Reuters) - Oil prices jumped about 20% in early trading on Monday, hitting their highest since July 2022, as the expanding U.S.-Israeli war with Iran fuelled fears of tighter supply and prolonged disruptions to shipments through the Strait of Hormuz.

COMMENTARY:

DANIEL HYNES, SENIOR COMMODITY STRATEGIST, ANZ, SYDNEY

"I think prices have rallied this morning on the reports that Middle East producers are now reducing output due to storage facilities filling up fast.

"I certainly think the spectre now of Middle Eastern producers curtailing output is going to keep those prices elevated. The next flag will be whether it eventually reaches a point where they have to start shutting in oil wells, which not only further impacts output but also delays a response once the conflict eases. That would potentially sustain those prices for much longer."