Oil prices rose above $115 per barrel for the first time since 2022
The jump was by 20 percent at once, and some analysts suggest that prices could reach $150
Stringer / Anadolu via Getty Images
Global oil prices exceeded $100 per barrel for the first time since 2022 amid fears that the escalation of the US and Israel's war with Iran could permanently disrupt supplies through the Strait of Hormuz, writes the BBC.
On Monday morning in Asia, Brent crude oil rose by approximately 20% to $115 per barrel, while American Nymex Light Sweet crude increased by more than 17% to $106.77.
Many market participants predicted that oil prices would reach the $100 per barrel mark this week.
As a result, a 10% jump took approximately one minute, and after another 15 minutes, the price rose by another 10% during early trading in Asia.
Last week, markets remained relatively calm, although millions of barrels of oil and liquefied natural gas were blocked in the Persian Gulf due to problems with passage through the Strait of Hormuz.
However, the escalation over the weekend, as well as footage of the destruction of energy infrastructure in both Iran and the Persian Gulf countries, caused sharp alarm in the markets.
The main question now is how the situation will develop further. Some analysts believe that if the strait remains closed until the end of March, oil prices could set a record and exceed $150 per barrel.
The current rise will likely lead to further increases in the price of gasoline, as well as important derivative products such as aviation fuel and key components for fertilizer production.
Asian markets remain the main consumers of oil and gas from the Persian Gulf countries.
However, there are already signs that Asian buyers are driving up prices for American gas: some tankers originally bound for Europe are turning around right in the middle of the Atlantic.
US President Donald Trump, commenting on the price jump, stated that the short-term rise is a "small price to pay" for eliminating the Iranian nuclear threat.
"A short-term rise in oil prices, which will quickly disappear after the elimination of the Iranian nuclear threat, is a very small price to pay for the security and peace of the US and the entire world," he wrote on the Truth Social network.
"ONLY FOOLS THINK OTHERWISE!" he added.
The US Energy Secretary stated on Sunday to American television channels that Israel, not the US, is carrying out strikes on Iran's energy infrastructure — amid concerns over rising domestic gasoline prices caused by the war.
Now reading
"Why do I have to prove I'm not a freeloader?" Entrepreneur from Homiel mistakenly listed as unemployed — he only found out after huge utility bills 16
"Why do I have to prove I'm not a freeloader?" Entrepreneur from Homiel mistakenly listed as unemployed — he only found out after huge utility bills
Working in Poland or Lithuania? Support "Nasha Niva" — it's completely free for you, and we will be able to do more for Belarus and Belarusian culture! 1010
Comments