The ongoing war between America and Israel against Iran has reached its third week and its impact is now clearly visible in the oil market. The threat to major oil sites has increased and the closure of the Strait of Hormuz has caused a major blow to the oil supply in the world. For this reason, a rise in crude oil prices was seen again on Monday.
The price of Brent crude increased by about $ 2.01 to reach $ 105.15 per barrel. At the same time, American West Texas Intermediate (WTI) crude also increased by $ 1.61 to reach $ 100.32 per barrel. In the last session also, oil prices had increased by about $3.
Crude oil price increased so much in one month
This month, oil prices have increased by more than 40% and have reached the highest level since 2022. The biggest reason for this is Iran stopping the movement of ships through the Strait of Hormuz after the US-Israel attacks. This route is considered very important for about 20% of the world’s oil supply.
Meanwhile, US President Donald Trump has warned that if the situation does not improve, more attacks can be carried out on Iran’s Kharg Island oil export center. About 90% of Iran’s oil is exported from Kharg Island. After Trump’s statement, Iran has also warned of retaliatory action. According to the report, shortly after the attacks on Kharg Island, Iranian drones targeted UAE’s Fujairah oil terminal. Although later the oil loading work started again, it is not yet clear whether the work has become completely normal or not.
Fujairah Oil Terminal
Fujairah is an important oil center located outside the Strait of Hormuz. From here, about 1 million barrels of UAE’s main Murban crude is exported per day, which is about 1% of the world’s total demand. Analysts say that America is now considering more stringent military options against Iran. These could include steps like raids on nuclear sites, capture of Kharg Island oil center or military action in southern Iran to protect the Strait of Hormuz. There is a danger of the conflict escalating further.
Meanwhile, Trump has asked allied countries to send their warships to help in the security of the Strait of Hormuz. According to the report, America may soon announce an international alliance that will provide security to ships passing through this sea route.
Oil reserves will be released into the market
To control the rise in oil prices, the International Energy Agency (IEA) has said that more than 400 million barrels of oil reserves of the countries of the world will soon be released in the market. This will be the biggest release till date. The reserves of countries in Asia and Oceania will be released into the market immediately, while the reserves of Europe and America will be made available by the end of March.
There is little hope for talks at the moment
On the other hand, some countries in the Middle East tried to start diplomatic talks with America, but the Trump administration has not accepted it yet. Iran has made it clear that it will not be ready for any ceasefire until America and Israel stop the attacks.
Experts say that despite the war entering its third week, there is no clear path in sight for its end. Due to this, concern and uncertainty is increasing in global markets. However, US Energy Minister Chris Wright says that he hopes that the ongoing war between America and Iran can end in the next few weeks. According to him, after this the oil supply will become normal again and energy prices may also fall.