Oil prices are rising: what’s behind the surge
1 April 10:21
Global oil prices rose by more than 1% on Wednesday, shrugging off news of a possible end to the conflict between the U.S., Israel, and Iran.
This was reported by Reuters, according to "Komersant Ukrainian".
As of Wednesday morning, the price of June Brent contracts rose by $1.40 to $105.37 per barrel.
According to LSEG, Brent recorded a record 64% increase in March, the highest figure since 1988.
At the same time, U.S. WTI crude rose by $1.59, reaching $102.97 per barrel.
Reaction to statements about the end of the conflict
The current rise partially offset the price drop recorded on Tuesday. The day before, the price of Brent fell by $3 due to unconfirmed reports that Iran was ready to cease hostilities.
U.S. President Donald Trump confirmed his intention to end the military campaign within the coming weeks.
He noted that the U.S. could withdraw from the conflict without necessarily signing a formal agreement with Iran. This was the most concrete signal yet regarding a possible end to the standoff, which has been ongoing for a month.
Infrastructure and Logistics Challenges
Despite diplomatic optimism, analysts warn of long-term risks to oil supply.
Experts emphasize that even in the event of an immediate ceasefire, significant infrastructure damage will limit exports.
Phillip Nova Senior Analyst Priyanka Sachdeva points out that logistics chains will not be able to return to their previous state immediately. Insurance costs for tankers and freight rates will remain high until a full assessment of the technical condition of oil terminals and shipping lanes is conducted.
Risks for the Strait of Hormuz
The market is paying particular attention to the situation in the Strait of Hormuz, through which one-fifth of the world’s oil and gas is transported.
The U.S. administration anticipates that hostilities will end before this key route is fully reopened.
LSEG analysts note that the lack of tangible diplomatic progress and ongoing threats to energy assets continue to weigh on the market.
The risk of supply disruptions remains the main factor driving prices higher, even amid active negotiations.
