Oil prices jump 8% with the escalation of the US-Iranian war and the closure of the Strait of Hormuz
Oil prices rose by about 8% at the beginning of Market trading today, Monday, driven by renewed military actions between the United States and Iran, in light of the closure of the Strait of Hormuz, a vital shipping lane for global energy commodities.
The price of Brent crude, the international standard, rose by 8% to $79.5 per barrel, while the price of West Texas Intermediate crude jumped by 7%.
This rise comes in the wake of the US-Israeli attacks against Iran last Saturday, which were followed by a series of missile attacks. And drones in the Gulf region.
Brent crude prices jumped by 10% to about $80 a barrel, according to traders outside the market yesterday, Sunday, while analysts expected oil prices to rise to $100 after the American and Israeli strikes on Iran sparked a new war in the Middle East.
Ajay Parmar, Director of the Energy and Refining Department at ICIS, said: "Although the military attacks themselves support oil prices, the main factor here is the closure of the Strait of Hormuz"Crude oil, fuel and liquefied natural gas through the Strait of Hormuz, after Tehran warned ships not to transit the waterway responsible for more than 20% of global oil trade.
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