Follow-Up
Oil prices continue their upward trend, driven by escalating geopolitical tensions following President Donald Trump’s threats to Iran regarding the Strait of Hormuz.
Brent crude futures rose by approximately 0.5% to reach $110.34 a barrel, while West Texas Intermediate increased by 1.1% to $113.67, amid growing concerns over global supply disruptions.
This surge comes in light of Trump’s warnings of strict measures against Tehran if it does not reopen the Strait of Hormuz, one of the most important strategic routes for oil transportation globally, through which about 20% of supplies pass.
In contrast, Iran has rejected U.S. pressures, emphasizing the need to resolve the dispute definitively and rejecting any temporary solutions, which adds to the uncertainty gripping the markets.
Analysts point out that time has become a significant factor in oil price movements, alongside fundamental factors, particularly with the deadline set by Trump approaching. Any progress towards a ceasefire could act as a balancing force that might limit the pace of price increases.
Additionally, field developments have intensified tensions following reports of gas carriers being intercepted in the region, along with ongoing restrictions on navigation through the Strait, heightening fears of a worsening supply crisis.
In related news, the United Nations Security Council is expected to vote on a resolution aimed at protecting commercial navigation in the Strait of Hormuz. However, disputes among major powers, especially with China’s objection, may lead to a diluted version of the resolution being adopted.
