The situation in the oil market is escalating amidst recent Iranian threats against the US, which is expected to cause oil prices to rise.
Oil Price Increase Amidst Conflict
Oil prices have significantly increased during early Asian trading hours. US WTI crude jumped over 2% to $75.22 a barrel, while the global benchmark Brent crude climbed nearly 2% to $78.53.
Iran's Threat to Shut Strait of Hormuz
Lawmakers in Tehran have approved a proposal to close the Strait of Hormuz, which carries nearly 20% of global oil supplies. Experts warn that Iran's military actions could sharply push oil prices higher. MST Marquee's analyst stated that even harassment of tankers could drive prices to nearly $100 per barrel.
Analysts Predict Brief Oil Surge
Goldman Sachs analysts indicate that if flows through the Strait of Hormuz decrease by 50% for just one month, Brent crude could briefly hit $110 per barrel. If Iranian oil exports fall by 1.75 million barrels per day, prices could rise to $90.
The ongoing conflict between Iran and the US and the threats to close key maritime routes have caused volatility in the oil market, making it a situation to monitor closely.
