Following the breakdown of the truce between the U.S. and Iran: oil and gas prices have surged
20 April 05:17
Oil and natural gas prices surged after the U.S. Navy seized an Iranian vessel, following Tehran’s attacks on European ships and its reestablishment of control over the Strait of Hormuz.
This was reported by "Komersant Ukrainian", citing Bloomberg.
As a result, the price of Brent crude jumped 7.9%, recouping most of Friday’s decline following the announcement that the Strait of Hormuz had reopened. Meanwhile, the price of European gas rose 11% amid the latest developments in the conflict in Iran .
“The market is still pricing in a risk premium ahead of the deadline, but it’s simply not fully adhering to it,” said Haris Khurshid, chief investment officer at Karobaar Capital LP in Chicago.
“If things continue as they are, you’ll likely see a gradual rise to around $105–115, but with significant volatility driven by headlines,” he added.
Recent developments between Iran and the U.S.
As a reminder, Donald Trump stated on Sunday evening that the U.S. Navy fired upon and seized an Iranian vessel in the Gulf of Oman after it failed to heed warnings to stop while exiting the Strait of Hormuz, marking the first serious clash in the week-long standoff.
The incident occurred a few hours after disputes over potential peace talks in Islamabad, where Trump said he saw a chance for a deal, while the Iranians stated there was no “clear prospect.”
Tehran’s refusal to engage in talks is attributed to the U.S.’s hardline stance toward Iran, specifically regarding nuclear containment of the Islamic Republic.
Trump has already stated that Iran even agreed to an indefinite moratorium on its own nuclear development and the export of the country’s enriched uranium to the U.S., without demanding the return of its frozen assets, which are located in several countries.
Iran has denied the American leader’s claims. Both countries are currently blocking the Strait of Hormuz, each on its own terms, which is having a significant impact on the global energy market.
