Brent crude has once again surpassed $90 — what’s happening on the global market
20 July 10:47
Global oil prices continue to rise sharply. On Monday, July 20, the price of the benchmark Brent crude exceeded $90 per barrel for the first time in over a month. This was reported by "Komersant Ukrainian", citing the Financial Times and Reuters.
According to Reuters, during trading on July 20, Brent crude futures rose by more than 3% to reach $90.87 per barrel—the highest level since June 11.
U.S. WTI crude also rose to $84.84 per barrel.
Overall, Brent gained 15.9% last week alone—its largest weekly gain since April—and has risen by more than 20% since the beginning of July.
Why Oil Prices Are Rising Sharply
As the Financial Times notes, the main reason for the price surge is a new escalation of the conflict between the U.S. and Iran.
For the ninth consecutive night, the U.S. military carried out strikes on Iranian territory. According to Washington, the targets were military facilities, surveillance systems, and communications equipment used to carry out attacks on commercial shipping.
In response, Iran announced attacks on oil tankers and threatened to effectively block passage through the Strait of Hormuz.
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Why the Strait of Hormuz Is Crucial
The Strait of Hormuz is one of the most important transport corridors for the global oil market. About 20% of global oil trade passes through it.
According to Reuters, the number of tankers passing through the strait has dropped significantly in recent days.
Barclays analysts warn that the market may be underestimating the consequences of potential supply disruptions, especially given that global oil reserves are currently at their lowest level in the past five years.
How Global Financial Markets Are Reacting
Despite the sharp rise in oil prices, other financial markets are showing a relatively subdued reaction.
According to Reuters, investors are closely monitoring developments in the Middle East. Analysts do not rule out that if the conflict escalates further, the price of Brent could approach $100 per barrel, and in the worst-case scenario, even exceed that mark.
How This Could Affect Ukraine
Rising oil prices traditionally affect global fuel prices. If Brent prices remain above $90 for an extended period, this could lead to a gradual increase in prices for gasoline, diesel, and autogas in Ukraine.
The ultimate impact will depend on global prices, the hryvnia exchange rate, and the cost of imported fuel.
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