Oil prices are rising on global markets: key factors
8 May 11:17
Oil prices resumed their rise on Friday, May 8, amid a new escalation of the conflict in the Middle East, which has jeopardized the U.S.-Iran ceasefire and dampened hopes for a swift reopening of the Strait of Hormuz, reports "Komersant Ukrainian", citing Interfax-Ukraine.
On Thursday night, Iranian military commanders accused the U.S. armed forces of carrying out several attacks in the south of the country in violation of the ongoing ceasefire.
According to Press TV, Tehran accused Washington of shelling an Iranian tanker near the city of Jask. Additionally, according to a statement by the Iranian military command, the U.S., “in cooperation with some countries in the region,” attacked civilian targets on Qeshm Island and in a number of coastal areas in southern Iran.
READ ALSO: The U.S. and Iran Exchange Strikes Again: What Happened in the Strait of Hormuz
U.S. President Donald Trump, for his part, stated that Iran unsuccessfully attacked three American destroyers in the Strait of Hormuz. According to him, the ships were not damaged, but “the Iranian attackers suffered massive damage.”
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At the same time, Trump confirmed that the ceasefire remains in effect despite the incident.
The price of July Brent crude futures on the London ICE Futures exchange, as of 8:15 a.m. local time, stands at $101.35 per barrel, which is $1.29 (1.29%) higher than at the close of the previous trading session. On Thursday, these contracts fell by $1.21 (1.2%) to $100.06 per barrel.
WTI crude oil futures for June delivery on the New York Mercantile Exchange (NYMEX) have risen by $1.05 (1.1%) to $95.86 per barrel as of this time. At the close of the previous session, their price had fallen by $0.27 (0.28%) to $94.81 per barrel.
The day before, the drop in oil prices reached $5 per barrel due to signals that the U.S. and Iran are moving toward resolving the conflict.
“Oil pricing is no longer based on a pragmatic assessment of the war’s progress or the actual situation in the Strait of Hormuz,” notes Vanda Insights analyst Vandana Hari. “The U.S. administration continues to overstate the prospects for resolving the conflict, and the market, prone to optimism, is buying into it.”
Both Brent and WTI are ending the current week down more than 6%.
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