Global oil prices showed a sharp increase on Friday, February 20, after US President Donald Trump set a strict time limit for resolving the conflict over the Iranian nuclear program. The market reacted with an immediate rise in Brent crude oil futures. This was reported by Reuters, writes UNN.
Details
The price of a barrel of Brent crude oil rose above $83 as traders began to factor in the possibility of strict sanctions against Iranian exports. Washington's ultimatum indicates a readiness for decisive action if Iran does not make significant concessions within the stipulated period, which could lead to the removal of significant volumes of oil from global supply chains.
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Analysts note that such rhetoric from the White House brings volatility back to the market, which had previously been in a state of relative stability.
Consequences for global energy
Industry experts warn that setting a timeframe for Iran could provoke retaliatory measures from Tehran, including threats to shipping in the Strait of Hormuz. This forces major oil buyers in Asia and Europe to seek alternative sources of supply, further pushing prices up. The situation remains tense, as any further escalation between the US and Iran in the coming weeks could trigger a new rally on energy exchanges.