Brent oil price exceeds $90 due to escalation between the US and Iran
Kyiv • UNN
Brent oil price rose to $91 per barrel due to the escalation of the conflict between the US and Iran. Iran announced the collapse of the ceasefire regime, increasing the risks of supply disruptions through the Strait of Hormuz.
The price of Brent crude oil rose above $90 per barrel after the escalation of the conflict between the US and Iran and attacks on facilities in the area of the Strait of Hormuz. Bloomberg reports this, writes UNN.
Details
The global benchmark Brent rose more than 3% to around $91 per barrel, the highest level since mid-June. Meanwhile, US West Texas Intermediate crude traded near $85 per barrel.
According to Bloomberg, Iran said the ceasefire regime with the US has effectively collapsed, increasing the risks of energy supply disruptions through the Strait of Hormuz.
The Iranian Navy reported that it stopped four unidentified vessels attempting to pass through the strait. According to their claims, two vessels were stopped after incidents, and two others changed course after warnings.
In addition, Kuwait Petroleum Corp. said that on Saturday an Iranian strike caused significant damage to one of the oil facilities in Kuwait.
MST Marquee senior analyst Saul Kavonic noted that further price increases are possible in the event of new attacks on the region's oil infrastructure or successful attempts by Yemeni Houthis to disrupt shipping through the Red Sea.
Iran-backed Houthis have repeatedly attacked shipping in the Red Sea, and last week threatened strikes on Saudi Arabian oil facilities.