The increase comes with the growth of tensions and the closure of the Strait of Hormuz, one of the main shipping routes for the commodity
Oil soared 9% this Thursday (12), reaching US$ 100.46 per barrel, highest value since 2022. The increase comes with growing tensions over navigability in the Strait of Hormuz, one of the main global routes for transporting the commodity. Iran’s new supreme leader, Mojtaba Khamenei, said on Thursday that the section must remain closed and promised “revenge” for Iranian deaths in the war with the United States.
Traded on the New York Mercantile Exchange (Nymex), WTI oil for April closed up 9.74% (US$8.48), at US$95.73 per barrel.
Brent for May rose 9.21% (US$ 8.48), to US$ 100.46 per barrel, traded on the Intercontinental Exchange in London (ICE)
Oil reached the key mark of US$100 per barrel in the early morning, amid Iranian attacks on refineries in Iraq. Another boost in commodity prices were statements by Mojtaba Khamenei, Iran’s new supreme leader, about the closure of the Strait of Hormuz and the threat of open new fronts in the war against the USA if the conflict in the Middle East continues. Mojtaba is the son of Ayatollah Ali Khamenei, who was killed by the US and Israel in the initial attacks of the war.
For Capital Economics, the rise in oil prices in the session was fueled by images of burning tankers in the Strait of Hormuz, which overshadowed the news of a record release of emergency oil reserves by member countries of the International Energy Agency (IEA). In a report, the organization this Thursday reduced the growth in global oil production from 2.4 million barrels per day (bpd) to 1.1 million bpd.
In the Persian Gulf, the Iraqi government stated that the country is preparing alternative export routes for oilafter suspending part of production on Wednesday in the face of Iran’s military offensive on the country’s refineries.
Saudi Arabia’s largest oil company, Saudi Aramco, reported that it is in negotiations with Ukrainian companies to buy drones that can help protect your oil fields, according to The Wall Street Journal.
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