Brent crude oil prices surged by 10% to around $80 a barrel following U. S. and Israeli strikes on Iran, which analysts suggest may increase prices to $100 due to escalating conflict in the Middle East. The oil benchmark had already risen to $73 a barrel on Friday, its highest since July, driven by concerns over potential attacks. Analysts highlight that threats to the Strait of Hormuz, a crucial shipping route for more than 20% of global oil, are a significant factor impacting prices. Following warnings from Tehran about shipping through this passage, many tanker owners, oil companies, and trading firms have halted shipments of crude oil and liquefied natural gas.
Experts expect oil prices to rise sharply when trading resumes after the weekend, potentially nearing or exceeding $100 if the Strait of Hormuz remains closed. U. S. relations with Middle Eastern leaders suggest that further conflict could push prices above this mark. On the other hand, Rystad’s analysis indicates a rise to around $92 a barrel. Meanwhile, OPEC+ has agreed to increase output by a modest 206,000 barrels per day starting in April. In response to the Iran crisis, Asian governments and refiners are evaluating oil stockpiles and exploring alternative supply routes, with India possibly looking to Russian oil to compensate for potential shortages from the Middle East.
With information from Reuters
