World oil prices rise due to escalation between the US and Iran
фотоколаж Reuters
Global oil prices continued to rise amid escalating US rhetoric towards Iran and risks to supplies through the Strait of Hormuz.
Reuters reports this.
Brent crude futures rose 0.5% to $110.34 a barrel, while WTI crude rose 1.1% to $113.67 a barrel.
US President Donald Trump has threatened Iran with tough measures if Tehran does not open the Strait of Hormuz, one of the world’s key oil shipping routes. He has given a deadline of Tuesday evening US time.
Iran rejected the offer, which the US conveyed through Pakistan, and declared the need for a complete cessation of the war. Tehran also refused to comply with the demands to open the strait.
KCM Trade analyst Tim Waterer said that expectations are now influencing the market as much as fundamental factors. According to him, the prospect of a ceasefire could curb price growth, but the risks of supply disruptions are supporting the market.
Additional pressure is being created by disruptions in oil supplies from the Middle East, which has oil refineries in Asia and Europe actively looking for alternative sources.
At the same time, Saudi Aramco raised prices for Arab Light crude to Asian customers, setting a record premium of $19.50 per barrel over the Oman/Dubai benchmark.
The situation was further complicated by a drone attack on a Caspian Pipeline Consortium facility on the Black Sea. According to Russia, loading infrastructure and storage tanks were damaged. The terminal handles about 1.5% of the world’s oil supplies.
It was previously reported that Russia is facing a reduction in oil production, as Ukrainian attacks on ports, pipelines, and refineries have significantly reduced the Kremlin’s export capabilities.
Recall that a Russian tanker with oil is heading to the shores of Cuba, and the US authorities are not preventing its passage. US President Donald Trump said that he sees no problems with such supplies.
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