Oil prices have risen sharply due to Iran’s attacks on energy facilities
12 March 12:31
Global oil prices have risen sharply amid escalating conflict in the Middle East and Iran’s attacks on energy and transport facilities in the region. This was reported by Reuters, according to "Komersant Ukrainian".
Oil futures:
- Brent crude oil rose by $8.54 (9.28%) to $100.52 per barrel
- West Texas Intermediate rose by $7.22 (8.28%) to $94.47 per barrel.
Investors fear that the escalation of the conflict could lead to prolonged disruptions in oil supplies.
The Strait of Hormuz is the main risk for the market
The situation around the Strait of Hormuz, one of the world’s most important oil transportation routes, remains a key factor of tension.
A significant portion of global energy supplies from the Persian Gulf pass through it.
Analysts at ING Group note that there are no signs of de-escalation in the region yet.
In their opinion, restoring stable supplies through the strait is the only way to stabilize prices.
Prices have already reached their highs
Tension in the market has been observed for several days.
On Monday, the price of Brent crude oil rose to $119.50 per barrel, the highest level since mid-2022.
Later, prices fell slightly after US President Donald Trump suggested that the war with Iran could end soon.
However, the market remains nervous due to the risk of new attacks.
Tankers under attack
Additional tension was caused by an attack on oil tankers in the region.
Two foreign tankers carrying fuel oil were attacked in Iraqi territorial waters.
According to Iraqi security services, the ships may have been attacked with explosives from boats that arrived from Iran.
The tankers caught fire after the strikes.
The world releases strategic reserves
To curb the rapid rise in prices, the International Energy Agency agreed to release 400 million barrels of oil from strategic reserves.
The United States will provide the largest share — 172 million barrels from its strategic oil reserve.
This move should temporarily stabilize the market.
Risk of long-term shortage
However, experts warn that releasing reserves may only curb prices in the short term.
Moomoo market strategist Tina Teng notes that supply disruptions through the Strait of Hormuz or a halt in production in the Middle East could cause a long-term oil shortage.
Threats of a sharp price jump
On the eve of the announcement, a representative of the Iranian military command said that the price of oil could rise to $200 per barrel.
According to him, this could happen due to the deterioration of security in the region, which, according to Tehran, was caused by the actions of the United States.
