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Oil prices rose on Tuesday, driven by growing concerns about supplies in the Middle East, after Libya's National Oil Corporation hinted at declaring "force majeure", amid ongoing tensions between the United States and Iran.
Brent crude futures rose more than 1.8 percent to about $107.9 per barrel, while U.S. crude rose 2.2 percent to about $103.7, by 14:30 (GMT).
This came shortly after the National Oil Corporation announced the shutdown of production and operations in the "Hamada" and "Tahhara" fields and the "NC5" station, after protesters from the Oil Facilities Guard closed the main shipping line valve "Hamada - Zawiyah" in western Libya.
The Corporation warned that it might declare "force majeure" if the shutdown continued or spread to other fields.
"Force majeure" refers to a clause in contracts (especially for long-term gas and oil supply) that allows the supplying party to exempt itself from contractual obligations (such as timely delivery of shipments) without paying financial penalties, due to events completely beyond its control, such as attacks.
These developments come as concerns about energy supply routes in the region are growing, with ongoing tensions around the Strait of Hormuz, the Red Sea, and the Bab al-Mandeb, along with the military confrontation between Washington and Tehran.
Brent crude exceeded $100 per barrel last week for the first time since July, as geopolitical risks in the region escalated.
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