The price for a barrel of Brent crude, the international standard, surged to $119.50 per barrel early in the day but later was trading near $106 per barrel, up 14%, before the opening bell.
West Texas Intermediate, the light, sweet crude oil produced in the United States, soared above $119.48 per barrel but fell back closer to $103.
The war’s toll on civilian targets grew as Bahrain accused Iran of striking a desalination plant vital to drinking water supplies. Bahrain's national oil company declared force majeure for its shipments after an Iranian attack set its refinery complex ablaze. The legal declaration releases the company of contractual obligations because of extraordinary circumstances.
Oil depots in Tehran smoldered following overnight strikes by Israel.
Oil prices have surged as the war, now in its second week, ensnares countries and places that are critical to the production and movement of oil and gas from the Persian Gulf.
Prices moderated after the Financial Times reported that some members of the Group of Seven industrial nations were considering releases of strategic oil reserves to alleviate pressure on the markets.
French President Emmanuel Macron said Monday that “the use of strategic reserves is an envisaged option.” He said G7 leaders could meet this week to coordinate a response to climbing energy prices. France currently holds the rotating presidency of the G7 group. Separately, finance ministers from the G7 nations are meeting Monday by video conference to discuss the repercussions from the war.
On Saturday, President Donald Trump downplayed the idea of turning to America’s Strategic Petroleum Reserve, saying U.S. supplies were ample and prices would soon fall.
