Oil prices surge as US-Iran conflict escalates: Brent climbs above $95
Oil prices are rising rapidly (photo: Getty Images)
Global oil prices are posting their biggest weekly gain since July amid a renewed escalation in fighting between the US and Iran, Bloomberg reports.
The price of benchmark Brent crude crossed $95 per barrel, jumping by about 7% over the week. Since the beginning of the year, its price has risen by nearly 60%. US West Texas Intermediate (WTI) crude exceeded $91 per barrel.
At the same time, petroleum products, particularly diesel fuel, are rising even faster due to the combined impact of the conflict in the Middle East and Russia's war against Ukraine.
This week, retail prices for industrial fuel in the US jumped to their highest level since mid-2022, while energy inventories in Europe were significantly below the usual seasonal levels.
Escalation of the conflict and the situation in the strait
The sharp rise in commodity prices came after a period of relative calm ended. The US bombing campaign earlier this week prompted a response from Tehran, which struck US military bases in the region.
Iranian forces continue to attack civilian and commercial vessels passing through the Strait of Hormuz. In addition, Tehran launched missiles at Jordan, Kuwait, and Bahrain.
Priyanka Sachdeva, head of analytics at Singapore-based Phillip Nova Pte Ltd., said oil markets are now reassessing their vulnerability. She stressed that the risk premium may decline only temporarily as long as the key security issue in the region remains unresolved.
According to Axios, the US struck more than 100 targets in Iran, which helped reduce the threat to shipping in the Strait of Hormuz. According to a US official, these actions are part of a new tanker-for-tanker policy.
Trump recently said that reaching a deal with Iran is no longer a priority for him. According to him, he is more satisfied with the current situation regarding control of the Strait of Hormuz.
