Oil Jumps as Trump Threatens Harder Strikes on Iran and Hormuz Remains Closed

A lag in Russia's tax formula turned February's low Urals prices into a March revenue drop.

Overview

U.S. crude rose more than 11 percent and Brent nearly 8 percent Friday, following President Donald Trump's vow to step up attacks on Iran.
Iran has effectively closed the Strait of Hormuz, the narrow route that carries about one‑fifth of the world's oil and liquefied natural gas.
Analysts warned prices could run higher if the waterway stays shut, with Citi flagging Brent near $95 to $130 this year and JP Morgan seeing $120 to $150 if closures last into mid May.
Bloomberg calculated Russia's March oil taxes at 494.9 billion rubles, down about 48 percent from a year earlier because March liabilities used February's Urals average below $45 a barrel.
Officials cited by Bloomberg expect a sharp rebound next month after Urals topped $120 for cargoes to India and after the U.S. temporarily let countries buy Russian crude already at sea, which boosted Asian demand.