Oil prices set to climb every week as Hormuz Strait tensions escalate
Photo: Oil prices are rising due to the situation in the Middle East (Getty Images)
Global oil prices rose sharply at the end of the week amid a new escalation of the conflict between the US and Iran. Investors fear disruptions to oil supplies through key maritime routes in the Middle East, according to Bloomberg.
Oil prices are ending the week with a strong rise due to the escalation of military tensions between the US and Iran. During Friday’s trading, the price of Brent rose by more than a dollar to $85.28 per barrel, while US WTI rose to $79.98. For the week, both benchmarks gained nearly 12%, the article states.
The rise was triggered by new US airstrikes on targets in southern Iran. In response, Tehran launched missile and drone strikes on US facilities in the region.
In addition, Iranian authorities have instructed the Houthis to prepare for a possible blockade of shipping in the Red Sea if the US continues to attack the country’s energy infrastructure.
Overall, the market fears that hostilities could disrupt oil exports from the Middle East. Traders are paying particular attention to the situation around the Strait of Hormuz and the Red Sea, through which a significant portion of global energy supplies passes.
Analysts note that in the event of further escalation, prices could rise even higher, with increases occurring weekly. In particular, US WTI could test the mid-$80s per barrel level if geopolitical risks do not subside in the near future.
The agency emphasizes that the conflict in the Strait of Hormuz has also affected supplies of fuels such as diesel and gasoline, leading to record profits for US oil refineries.
Oil prices continue to rise amid escalating tensions in the Middle East, where merchant ships are being attacked.
On July 15, oil prices rose again after US President Donald Trump reimposed a naval blockade on all Iranian ports, and Tehran launched strikes against US infrastructure in the region.
