Effect of inflation! Huge jump in crude oil prices amid Iran-US tension, Brent crude crosses $96
New York. Crude oil prices rose in early trade on Sunday after the ongoing standoff between Iran and the US prevented tankers from passing through the Strait of Hormuz. This is an important waterway of the Persian Gulf, which is considered extremely important for global energy supply. After the start of trading on the ‘Chicago Mercantile Exchange’, the price of US crude oil increased by 6.4 percent to $ 87.88 per barrel. The price of international standard Brent crude rose 6.5 percent to $ 96.25 per barrel.
This reaction of the market came amid rising and falling expectations regarding this waterway for the last two days. Crude oil prices fell by more than nine percent after Iran announced on Friday that it would fully open passage to commercial ships off its coast. Iran effectively controls this route.
However, Tehran withdrew its decision on Saturday after US President Donald Trump said the US Navy blockade of Iranian ports would continue. The US-Israel war against Iran is now in its eighth week. The war has led to one of the worst global energy crises in decades.
Countries in Asia and Europe, which import a large portion of their oil from West Asia, have been hardest hit by supply disruptions and production cuts. US Energy Minister Chris Wright said that petrol prices may provide some relief only next year. Crude oil prices have been witnessing continuous fluctuations since the attack by America and Israel on February 28.
Before the conflict, the price of crude oil was around US$70 per barrel, which later increased to more than US$119. On Friday, US crude oil closed at US $ 82.59 per barrel and Brent crude at US $ 90.38 per barrel.
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