Oil prices rise due to tensions between the US and Iran
Oil prices are rising again amidst increased tensions between the US and Iran, as well as recent attacks on vessels in strategically important straits, raising concerns about potential disruptions in oil supply from the Middle East.
On Wednesday, August 12, Brent crude oil futures rose by 72 cents, reaching $89.63 per barrel, indicating a 0.81% increase. American WTI oil also increased by 71 cents, or 0.85%, reaching $83.91 per barrel, Reuters reports.
The price increase occurred after the US and Iranian-backed Yemeni Houthis announced attacks on vessels in the Hormuz and Bab-el-Mandeb straits. Although six vessels still passed through the Hormuz Strait, these numbers remain significantly lower than in peaceful times, when 125 to 140 vessels passed through the strait daily.
Iran insists that the route through the Hormuz Strait will remain closed unless the US makes concessions, including unfreezing Iranian assets and stopping other regional conflicts. Recently, US military forces attacked a Panama-flagged vessel in an attempt to prevent a breach of Iran’s blockade.
Experts warn of possible consequences if the dispute continues to escalate, as it may further complicate oil supply and push prices to new heights. Uncertainty prevails in international markets, marked by price fluctuations and instability.
Oil is expected to remain in the spotlight of global markets as geopolitical risks continue to affect its value. However, until a long-term solution to the regional conflicts is found, markets will remain tense.
