price of crude oil
The effect of increasing tension between America and Iran is now directly visible on the global oil market. On Thursday, the price of Brent crude crossed $ 70 per barrel, which is the first time since September. This sharp rise in prices was seen after US President Donald Trump threatened Iran with military action.
Strong rise in Brent and WTI
In the London market, Brent North Sea crude rose by 2.4% to reach $ 70.06 per barrel. At the same time, the American benchmark West Texas Intermediate (WTI) also rose by 2.6% to $ 64.82 per barrel. Experts say that if tensions increase further, prices may rise further.
Trump’s tough stance on Iran
Posting on his social media platform Truth Social, Trump said that Iran should immediately come forward for talks regarding its nuclear program. He wrote that any agreement should be such that there are no nuclear weapons and which is fair to all parties. Trump warned that if Iran did not negotiate, the situation could become more serious.
Iran warns of counterattack
Iran’s Foreign Minister Abbas Araghchi has warned America in clear words that if any military action is taken, Iran will give an immediate and strong response to it. This has further increased the possibility of conflict in the area.
Danger of crisis on oil supply
According to market expert Darren Nathan, if the conflict between America and Iran increases, then Iran’s daily oil production of about 3 million barrels could be affected. Apart from this, the movement of oil and gas tankers passing through the Strait of Hormuz may also be disrupted. This route is considered very important for the world’s energy supply.
Oil may become more expensive in future
Experts believe that at present there is an atmosphere of fear in the market. As the war of words is intensifying, investors are viewing oil as a safe investment. This is the reason why Brent crude has reached a four-month high. If the situation does not improve, the pressure on petrol and diesel prices may also increase in the coming days.