Oil prices are skyrocketing: key factors driving the price increase
7 April 13:14
Oil prices continued to rise on Tuesday, April 7, as markets awaited the expiration of the deadline Washington had set for Tehran to reopen the Strait of Hormuz.
This is reported by "Komersant Ukrainian" citing Reuters.
Brent crude futures rose 1.3% to $111.2 per barrel, while WTI crude futures rose 2.55% to $115.28 per barrel.
U.S. President Donald Trump threatened to unleash “all the forces of hell” on Tehran and strike bridges and power plants if Iran fails to comply with the demand to open the strait by 8:00 p.m. Eastern Time on Tuesday (3:00 a.m. Kyiv time). In response to the U.S. proposal, brokered by Pakistan, Tehran stated the need for a definitive end to the war, rather than a temporary ceasefire, and refused to open the strait under pressure.
According to Priyanka Sachdeva of Phillip Nova, Iran’s refusal is keeping tensions high and complicating the work of diplomats.
“Oil is holding its ground because the risk of hostilities is no longer theoretical,” Sachdeva noted. “Strikes on energy and transportation facilities continue, and traders fear that even after the war ends, infrastructure damage could take large volumes off the market for months.”
Meanwhile, Saudi Arabia has set the official May selling price for Arab Light crude to Asia at a premium of $19.50 per barrel to the Oman/Dubai average, which is $17 higher than in April and marks the highest level in history, according to the pricing document.
Ukraine attacked facilities of the Caspian Pipeline Consortium (CPC), damaging the pipeline of the offshore loading facility (OLF) and the loading and unloading pier, the Russian Ministry of Defense reported yesterday.
