FX.co ★ Crude Oil Hits $100

Crude oil prices jumped as much as 22% at the open, rising above $110 a barrel and extending last week’s record 36% gain. The rally followed production cuts by key Middle Eastern producers, prompted by the continued closure of the crucial Strait of Hormuz amid the war in Iran. Kuwait, OPEC’s fifth-largest producer, announced precautionary reductions in both oil output and refinery runs, citing Iranian threats to shipping through the strait. In Iraq, production from its three main southern oilfields has dropped by about 70%, to 1.3 million barrels per day from 4.3 million before the conflict, according to industry officials. The United Arab Emirates said it is carefully managing offshore production to accommodate storage constraints, while onshore operations are continuing as normal.