crude oil
Iran’s First Vice President Mohammad Reza Arif said that fuel prices around the world can become stable only when economic and military pressure on Iran’s oil exports is eliminated. Arif wrote in a threatening manner on the social media platform X that no one can expect free security for others by stopping Iran’s oil exports. The option is clear: either there should be a free oil market for all, or everyone will have to take the risk of paying a heavy price.
Oil prices rose in early trading on Sunday as oil tankers were unable to use the Strait of Hormuz due to the ongoing tension between Iran and the US. This is a water route of the Persian Gulf which is very important for energy supply across the world. US crude oil prices rose 6.4% to $87.88 per barrel after trading resumed on the Chicago Mercantile Exchange. The price of Brent crude, considered the international benchmark, rose 6.5% to $96.25 per barrel.
Iran’s statement
Iran had said on Friday that it would completely reopen this route passing near its coastline for commercial traffic. After this news, crude oil prices fell by more than 9%. On Saturday, Tehran withdrew its decision, because President Donald Trump had said that the US Navy’s blockade of Iran’s ports will continue.
America and Israel’s action against Iran has given rise to one of the world’s biggest energy crises in the last several decades. The countries of Asia and Europe, which import most of their oil from the Middle East, have suffered the most from supply stoppages and production cuts. However, the rapidly rising prices of petrol, diesel and jet fuel are affecting businesses and ordinary consumers around the world.
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