The reason cited involved assaults on oil tankers, coupled with statements from Iran concerning a potential blockage of the Hormuz Strait.
Oil prices have gone up / © Reuters
Oil values surged to approximately $100 a barrel on the evening of March 12, amidst attacks on tankers in the Persian Gulf and fresh threats emanating from Iran.
This information is conveyed by Reuters.
Brent crude future contracts experienced a 10.4% rise, reaching $101.59 per barrel during that period. Some of these gains were subsequently diminished, as market uncertainties lingered regarding whether the deployment of strategic reserves would suffice to mitigate the repercussions of a possible supply deficit from the Middle East.
Simultaneously, US crude future contracts saw an 8.7% increase to $94.85 per barrel, whereas Brent later traded just under the important $100 threshold.
During a broadcast on state television Thursday, Iran’s new leader, Ayatollah Ali Khamenei, proclaimed vengeance for recent fatalities, pledging to maintain the Strait of Hormuz closed and to strike US military installations. These represented his inaugural public remarks following his succession of his assassinated predecessor.
In parallel developments, Iraqi security officers reported that two fuel tankers located in Iraqi waters were attacked by Iranian vessels carrying explosives. Furthermore, an Iraqi official communicated to state media that the nation’s oil ports had “entirely ceased functioning.”
“The market remains intensely concerned about ongoing events in the Strait of Hormuz, and essentially the data received over the past day has not been encouraging,” stated NAB senior currency strategist Rodrigo Catril.
Iran has, in the past, escalated assaults on commercial vessels in the Strait of Hormuz. Since the commencement of hostilities, the count of vessels impacted within the region has risen to a minimum of 16.
Tehran has also cautioned the global community to brace for a potential surge in oil values reaching $200 per barrel. However, US Energy Secretary Chris Wright indicated on Thursday that global prices are unlikely to escalate to that level.
It was previously documented that Saudi Aramco, the world’s leading oil exporter, is engaged in dialogues with a pair of Ukrainian enterprises specializing in the production of interceptor drones.
We had previously noted that the Russian Federation secures nearly half a billion dollars each day from energy-related exports, empowering the aggressor to procure thousands of drones for the continuation of the conflict.