Oil prices are rising on global markets: the main reasons
24 April 12:15
Oil prices have surged amid renewed tensions in the Middle East. Iran has seized a cargo ship in the Strait of Hormuz, and air defense systems were activated in Tehran. The market is reacting to the threat to supplies through this strategically important region, reports "Komersant Ukrainian", citing Reuters.
“Brent crude futures rose 99 cents, or 0.94%, to $106.06 per barrel at 04:10 GMT, while West Texas Intermediate crude futures rose 71 cents, or 0.73%, to $96.56,” the report states.
Impact of the situation in the Strait of Hormuz on logistics
Iran’s control over the Strait of Hormuz remains a critical factor for energy security, as approximately 20% of global oil and liquefied natural gas exports pass through this route.
Any disruptions in this region threaten a sharp reduction in supply on the global market.
Analysts warn that prolonged instability in the strait could deplete global crude oil reserves below seasonal lows as early as the beginning of summer.
Energy Price Forecasts
U.S. President Donald Trump noted that Iran could use the two-week ceasefire to rebuild its arsenal, but assured that the U.S. military is capable of quickly neutralizing the threat.
Experts at Haitong Futures suggest that the current pause in hostilities may merely be a preparatory phase leading up to a large-scale conflict. If diplomatic negotiations fail to yield results by the end of April, energy prices could set new annual records.
