Crude Oil Price: Crude flares up due to US-Iran tension, price crosses $79; Danger of expensive petrol and diesel in India!

Crude Oil Price Hike: The direct effect of the ongoing tension in the Middle East has started being visible in the world oil markets. On Monday, July 13, the first day of the week, a significant increase was seen in the prices of crude oil. Crude oil prices crossed $79 per barrel with a jump of 4 percent. This rise in crude oil prices is being seen after the resumption of instability in the Strait of Hormuz.

America again became aggressive after the attack on Cyprus commercial ship in Hormuz. Attacked 140 different targets of Iran. In response to the attack, Iran has also attacked American bases in the Gulf countries. At the same time, Iran has announced the closure of Hormuz. At the same time, Trump is claiming that the Strait of Hormuz is still open.

Crude oil crossed 79 dollars

Brent crude is now trading above the $79 per barrel mark for contracts expiring in September. The 4 per cent jump in crude oil prices came after the contract had gained 5.5 per cent last week, while West Texas Intermediate (WTI) or the US crude variant was also trading above the $74 per barrel mark. European natural gas futures also gained 2.5 percent after the weekend break.

What is the latest update of Hormuz?

After the American attack, Iran Strait of Hormuz It has been announced that it will remain closed until further notice. The Strait of Hormuz is a key waterway that controls 20 percent of global fuel supplies. However, the US Central Command has rejected Iran’s claim and said that the army is ready to ensure freedom of navigation. In a post on the social media platform X, the Central Command wrote that the Strait of Hormuz is open to all vessels that wish to legally pass through the international waterway.

America-Iran agreement failed

US Central Command It also said it had launched a new round of strikes at 5 p.m. Eastern Time on Sunday to hold Iran responsible for attacks on commercial ships in the strait. After losing all the gains made during the Iran war, crude oil prices are rising again. The US and Iran signed an agreement during the G7 summit in France last month. This included points like ending the war and ensuring safe passage of commercial ships through the strait.

Danger of impact on oil reserves

The latest flare-up threatens to derail efforts to rebuild depleted oil reserves later this year, according to a statement from the International Energy Agency on Friday, ahead of the recent attacks. There was almost no traffic through the strait on Sunday, with only two oil product tankers seen approaching the chokepoint, according to the Joint Maritime Information Centre. However, JMIC added that the southern route coordinated by Oman is still available.

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Iran’s warning to America

Iran’s Parliament Speaker and top negotiator Mohammad Bagher Ghalibaf has announced that the era of one-sided deals is over. He stressed that before talks resume, Washington should prioritize earlier commitments on the Hormuz transit and normalize oil exports from Iran.