Concerns over Iran’s response to the attack on its embassy in Damascus last week helped push global Brent crude prices to $92.18 a barrel, the highest since October 2023.
Oil prices are expected to rise on Monday following Iran’s attack on Israel over the weekend, with further increases depending on the response from Israel and allies, Bloomberg reported.
Concerns over Iran’s response to the attack on its embassy in Damascus last week helped push global Brent crude prices to $92.18 a barrel, the highest since October 2023.
On Friday, prices rose 71 cents to $90.45 a barrel, while US West Texas Intermediate crude rose 64 cents to $85.66 a barrel.
Trading is closed on Sunday.
“It is reasonable to expect higher prices when trading resumes (Monday), however, there is no impact on production so far and Iran has said the matter can be considered closed.”
However bitter and painful the market’s initial reaction, the rally could be short-lived unless supplies from the region are significantly disrupted,” said PVM oil broker Tamas Varga.
The Biden administration has said it is discouraging Iran from increasing exports and tightening sanctions.
A drop in Iran’s exports would further increase oil prices and the cost of gasoline in the United States, a politically sensitive issue ahead of the election.
The price increase may also be affected by the closure of the Strait of Hormuz, through which ⅕ of world oil exports pass.
On Tuesday, April 9, the commander of Iran’s Revolutionary Guard navy said Tehran could close the strait if it deemed necessary.
Let’s recall that the export of oil and petroleum products of Russia in March 2024 increased by 210 thousand barrels per day compared to the previous month – to 7.84 million b/d (by 2.8%), and the revenues from on oil exports decreased by 20% – up to $9.3 billion
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.