Oil Prices Rise Again Amid Ongoing Tensions With Iran

Oil Prices Rise Amid Ongoing Iran Conflict

Brent crude futures reached $126.41 per barrel on Thursday, marking a 5% increase for the week. The price surge is attributed to ongoing efforts to resolve the conflict in Iran, with Tehran continuing to block the Strait of Hormuz and the US Navy imposing a blockade on Iranian ports and exports.

As of Friday morning, Brent crude was up 89 cents at $111.29 per barrel, compared to approximately $65 before the US and Israel launched strikes on Iran on February 28. The Brent benchmark is poised for a 5.7% gain over the week, according to Reuters.

Brent crude futures for June also rose on Thursday, reaching $126.41 per barrel before expiry, marking the highest level since March 2022. A ceasefire between the US and Iran has been in place since April 8, but Iranian Foreign Ministry spokesperson Esmaeil Baghaei expressed skepticism about achieving quick results.

Baghaei stated that expecting a resolution in a short time frame is “not very realistic.” Iran has threatened to retaliate if the US resumes attacks on its assets in neighboring Gulf countries. The United Arab Emirates’ presidential adviser, Anwar Gargash, warned that Iranian aggression poses a threat to freedom of navigation through the Strait of Hormuz.

The UN Secretary-General, Antonio Guterres, cautioned that prolonged disruption to global oil supplies could lead to reduced economic growth, increased inflation, and widespread poverty. A White House official reported that US President Donald Trump discussed ways to mitigate the impact of a potential months-long siege on Iranian ports with oil executives.

Source: Al Jazeera