The escalating tensions between the US and Iran are now directly impacting the global oil market. On Thursday, Brent crude prices surged past $70 per barrel, the first time since September. This sharp increase in prices followed US President Donald Trump’s threat of military action against Iran.
Strong gains in Brent and WTI
In the London market, Brent North Sea crude rose 2.4% to $70.06 per barrel. The US benchmark West Texas Intermediate (WTI) also climbed 2.6% to $64.82 per barrel. Experts say that if tensions escalate further, prices could rise even higher.
Trump’s tough stance on Iran
Trump, posting on his social media platform Truth Social, said that Iran should immediately come forward for talks regarding its nuclear program. He wrote that any agreement should prevent the proliferation of nuclear weapons and be fair to all parties. Trump warned that if Iran does not engage in talks, the situation could become even more serious.
Iran warns of retaliation.
Iranian Foreign Minister Abbas Araghchi clearly warned the US that if any military action is taken, Iran will respond immediately and forcefully. This has further increased the likelihood of conflict in the region.
Threat of disruption to the oil supply
According to market expert Darren Nathan, if the conflict between the US and Iran escalates, it could affect Iran’s daily oil production of approximately 3 million barrels. In addition, the movement of oil and gas tankers through the Strait of Hormuz could also be disrupted. This route is considered crucial for the world’s energy supply.
Oil prices could rise further.
Experts believe that there is currently an atmosphere of fear in the market. As the war of words intensifies, investors are viewing oil as a safe-haven investment. This is why Brent crude has reached a four-month high. If the situation does not improve, petrol and diesel prices could also come under increased pressure in the coming days.
