The prompt Brent futures contract saw a quiet start to the morning before experiencing a retracement downwards, from $89.82/bbl at 09:15 BST down to $89.06/bbl at 10:15 BST. In the headlines, the EU and US are considering additional sanctions against Iran, with Reuters noting the move sought to discourage Israel from retaliation for this weekend missile strike barrage that would inevitably lead to an escalation in the conflict. In related news, after multi-month lows for nearly the entire winter heating season in the northern hemisphere, spot LNG prices for delivery into north Asia have jumped in recent days amid concerns that an Israeli response to the Iranian attack could escalate into a regional conflict, obstructing LNG cargo flows around the Middle East, most notably via the Strait of Hormuz, where 20% of the world’s LNG trade passes. The front and 6-month Brent futures spreads are at $0.71/bbl and $4.19/bbl, respectively.
