Several major oil companies have already suspended crude oil and fuel supplies through the Strait of Hormuz, and the price of Brent crude could rise from $73 to around $80 per barrel. This was reported by Reuters, writes UNN.
Four sources said on Saturday that some major oil companies and leading trading houses had suspended crude oil and fuel supplies through the Strait of Hormuz.
On Friday, Brent crude traded at around $73 a barrel, already 20% higher than at the beginning of the year.
William Jackson, Capital Economics' chief emerging markets economist, said that even if the conflict is localized, the price of Brent crude could rise to around $80, which was the peak during the 12-day war in Iran last June.
On Saturday, the US and Israel launched strikes on Iran, targeting its leadership, plunging the Middle East into a new conflict that President Donald Trump said would end the security threat and give Iranians a chance to overthrow their rulers.
These strikes caused concern in neighboring oil-producing Arab Gulf countries, as fears of escalating conflict intensified, and Tehran responded by launching missiles towards Israel.
The publication emphasizes that Iran is a major oil producer and is located opposite the oil-rich Arabian Peninsula across the Strait of Hormuz, through which about 20% of the world's oil supplies pass. The conflict could limit the flow of oil to the global market and cause prices to rise.
Recall
On February 28, Israel and the United States conducted a joint military operation, striking 30 targets in Iran.
Also, UNN reported that the Israeli army struck Hezbollah targets in southern Lebanon.
Later, it became known that the US and Israeli military operation against Iran had been planned jointly for several months.