Oil Prices Are Rising Again: What Are the Reasons?
13 April 10:38
Following the collapse of peace talks between the U.S. and Iran and U.S. President Donald Trump’s announcement of a blockade of Iranian ports, oil prices surged and stock prices plummeted.
On the morning of Monday, April 13, the price of Brent crude oil from the North Sea rose by 8 percent to $102.80 per barrel. Before the start of the U.S.-Iran talks on April 11, it stood at $95.20. U.S. WTI crude oil showed a similar increase, with its price also exceeding the $100-per-barrel mark, reports "Komersant Ukrainian", citing DW.
Declines in stock markets
At the same time, the leading stock market indices in Tokyo, Hong Kong, and Seoul fell by at least 1 percent. Other Asian stock exchanges also saw declines in key indices.
Meanwhile, Trump acknowledged that oil and gasoline prices may remain high until the U.S. midterm elections in November.
Trump announced a blockade of Iranian ports
The day before, Donald Trump announced a blockade of Iran’s seaports following a failed round of negotiations in Islamabad. In doing so, he aims to prevent Tehran from collecting fees from shipping companies for passage through the Strait of Hormuz and to deprive the Islamic Republic of revenue from oil sales.
Following this, U.S. Central Command announced that it would begin enforcing a blockade of all vessels entering Iranian ports and coastal areas, effective April 13 at 10:00 a.m. Eastern Time. The blockade will apply to vessels from all countries and affect all Iranian ports in the Persian and Omani Gulfs. CENTCOM will not interfere with freedom of navigation in the Strait of Hormuz or at non-Iranian ports.
Negotiations in Islamabad on April 11 collapsed over the issues of nuclear weapons and the Strait of Hormuz. During the talks, Iran insisted on control over the strait and the right to levy duties on ships passing through it, the British newspaper The Financial Times reported. The country’s delegation also rejected the U.S.-proposed options for “joint control” over the strait.
