Oil prices are fluctuating wildly: how the war is affecting the price of “black gold”
23 March 10:27
Oil prices fluctuated as investors weighed the escalating threats from the U.S. and Iran against energy facilities against the loss of millions of barrels of Iranian oil.
This was reported by Reuters, according to "Komersant Ukrainian".
Brent crude futures rose 65 cents to $112.84 per barrel. U.S. West Texas Intermediate crude was trading at $98.75 per barrel, up 84 cents. The spread between Brent and WTI oil prices, which exceeds $13 per barrel, is the widest in recent years.
“Sentiment toward oil may fluctuate due to threats and rhetoric in the near term, but its more sustainable direction will continue to be shaped by oil flows in the Middle East,” noted Vandana Hari, founder of the oil market analysis firm Vanda Insights.
On Saturday, U.S. President Donald Trump threatened to “destroy” Iran’s power plants if it did not fully open the Strait of Hormuz within 48 hours.
Iranian Parliament Speaker Mohammad Baqer Qalibaf wrote on X that critical infrastructure and energy facilities in the Middle East could be “irreversibly destroyed” if Iranian power plants are attacked.
“This clearly signals further escalation, which means higher oil prices. However, some mistakenly believe that Iran might back down,” emphasized Amrita Sen, founder of Energy Aspects.
The war has damaged key energy facilities in the Persian Gulf and nearly halted shipping through the Strait of Hormuz, through which about 20% of global oil and liquefied natural gas flows pass, Reuters notes.
Analysts estimate oil production losses in the Middle East at between 7 and 10 million barrels per day.
