Mathematics of War and Crude Oil
As updates on the war are coming from Iran and America, the prices of crude oil are also changing. As soon as the announcement of opening of Homurz Gate was made on Friday, the prices of crude oil fell by more than 12 percent. Then there was an announcement that the Homurz Gate would not be opened. After this announcement, oil prices once again gained momentum. On Monday, there was an increase of more than 6 percent in the prices of crude oil.
So will the oil game continue like this? Some experts believe that if there is no ceasefire, the price of crude oil may go up to $250. Some experts say that if the situation changes, crude oil prices may fall below $80. If anything has been discussed the most in this entire war, it is crude oil.
constantly changing prices
Crude oil prices rose in early trade on Sunday after tankers were stopped from passing through Hormuz due to the ongoing standoff between Iran and America. 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 American crude oil increased by 6.4 percent to $ 87.88 per barrel. The price of international standard Brent crude increased by 6.5 percent to $ 96.25 per barrel. This reaction of the market came amid fluctuating expectations regarding this waterway for the last two days.
What does Iran want?
Iran announced on Friday that it would completely open the route to commercial ships near its coast, after which crude oil prices fell by more than nine percent. Iran effectively controls this route. However, on Saturday, Tehran withdrew its decision, when US President Donald Trump said that the US Navy blockade of Iranian ports would continue.
Oil is burning in the fire of war
The US-Israel war against Iran is now in its eighth week. This war has given rise 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 most affected by supply disruptions and production cuts. US Energy Minister Chris Wright said that petrol prices can provide some relief only next year. Crude oil prices have been continuously fluctuating 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, American crude oil closed at US $ 82.59 per barrel and Brent crude at US $ 90.38 per barrel. But once again the oil has played a role and it has started running fast again. Now the question arises whether the oil game will continue further.
