Petroleum is at the highest level of five months – Cyprus Newspaper

Oil prices approached the summit of five months after Trump’s harsh warning against Iran.

Oil rose after Israel’s attacks on Iran last week after the start of the prices of approximately 10 percent since the start of the Prices that the US could participate in the conflict increased concerns about the supply interruptions in the Middle East.

While Brent oil was traded over $ 76 per barrel, the US crude oil was traded around $ 75. Thus, oil prices reached the peak of five months. US President Donald Trump requested a “unconditional delivery ve from Iran and warned the country’s leader Ayatollah Ali Khamenei on a possible attack on a possible attack on social media; Then he met with the national security team.

So far, Iran’s crude oil export infrastructure has not been damaged and its effects have been largely limited to maritime transport. The Middle East produces about one -third of the world’s oil and a wider conflict can increase the prices further.

These hostilities shook global markets; While investors turned to safe assets such as gold, the volatility in oil prices has reached the highest level of the last three years. The futures of Brent oil has risen harshly, which indicates concerns about the contraction of supply. In addition, oil options reflect the expectation of rise more than ever since the Russian-Ukraine war in 2022.

The biggest concern for the oil market is focused on the Hormuz Strait; However, there is currently no sign that Tehran intends to interrupt sea transport on this narrow water road. Approximately one fifth of crude oil production in the world passes through this throat, including Saudi Arabia.

“Trump’s demand for ‘unconditional surrender’ from Iran and the threats of the country’s religious leader are no longer an option. The blockade of Hormuz in the worst scenario, may raise prices hard, Kaha said SAXO Markets Chief Investment Strategist Charu Chanana.