Crude Oil crosses 110 dollars
Once again a severe rise is being seen in the prices of crude oil in the international market. The deepening tension between America and Iran has created a stir in the energy market, which has affected the price of Brent crude. According to the latest data, Brent crude has crossed the level of $ 110 per barrel. Whenever the prices of crude oil rise so rapidly at the global level, it directly impacts the monthly budget of the common man through the prices of petrol and diesel. The main reason behind this latest surge is Trump’s strict warning, in which he has clearly told Iran that the time to take decisions is running out.
Brent crude has reached $ 110.70 per barrel
Brent crude futures have reached $ 110.70 per barrel with a strong jump of 1.32 percent (about $ 1.44). This is the highest level since May 5. At the same time, American West Texas Intermediate (WTI) crude is also not lagging behind. It is trading at $107.26 per barrel, up 1.75 percent ($1.84), its highest level since May 4. In fact, since the end of February when America and Israel launched the initial attacks on Iran, the prices of crude oil have increased by more than 50 percent.
Trump’s warning which spread panic in the market
Donald Trump’s recent statements have added fuel to the crude oil fire. On Sunday, Trump wrote openly on social media warning Iran that he is running out of time. They will have to take a decision very soon, otherwise they will lose nothing. According to a report by Axios, Trump wants a deal. On Saturday, he discussed the situation of war with Vice President JD Vance, Secretary of State Marco Rubio, CIA chief John Ratcliffe and White House envoy Steve Witkoff. He is going to have another important meeting with his national security team on Tuesday. Trump is waiting for a new proposal from Iran, but he has also made it clear that if Iran remains adamant on its insistence, it will have a very bad effect on it.
Growing supply crisis in Gulf countries
A major reason for this huge increase in prices is the global supply chain being badly affected. The movement of oil through the Strait of Hormuz has reduced, due to which the producers of the Persian Gulf are facing huge problems. Major financial institutions like Morgan Stanley have also warned that the market is currently in a “race against time”. If this important sea route remains closed till the month of June, the situation may go out of control. Apart from this, the Trump administration’s decision to end the exemption given on the purchase of crude oil from Russia has also put huge pressure on the supply, while India had requested to extend this exemption. This weekend’s drone attack on a nuclear plant in the United Arab Emirates (UAE) has confirmed that energy sites remain under threat.
Israel’s new preparations for war
The situation remains delicate because after the ceasefire on April 8, clouds of war have started looming again. Zev Elkin, an important member of Israeli Prime Minister Benjamin Netanyahu’s security cabinet, has made it clear on Kan Radio that if Trump gives the signal, the country is fully prepared to start bombing Iran again. According to Elkin, he has pre-determined targets which he wants to hit.
