As of the morning of March 4, global markets are experiencing a sharp rise in oil prices. The increase is attributed to new attacks in the Middle East and discussions among U.S. authorities about the possibility of implementing insurance and military escort for oil tankers in the Strait of Hormuz.
This is reported by Finway
Increase in Brent and WTI Quotes
As of 10:29 Kyiv time, the price of Brent futures has risen by $2.8, reaching $84.2 per barrel. The cost of WTI increased by $2.24 to $76.8. Since the beginning of the week, Brent has risen by 12%, marking the largest increase since 2020.
Possible U.S. Support for Tankers
President Donald Trump announced that the U.S. International Development Finance Corporation is considering the possibility of providing insurance for vessels and, if necessary, organizing naval escorts to protect energy supplies. This initiative was announced following reports of the temporary closure of Iraqi oil fields in Rumaila and the West Qurna project, which could lead to a suspension of the majority of oil production in Iraq.
“The U.S. International Development Finance Corporation may offer insurance for vessels and, if needed, naval escorts to ensure the supply of energy resources.”
At the same time, according to Kayrros, key oil storage facilities in Saudi Arabia are rapidly filling up, which is also affecting market conditions.
ING experts believe that the immediate deployment of military escorts is unlikely, as military vessels could become targets for Iranian forces. Following U.S. statements, the Islamic Revolutionary Guard Corps warned of possible drone and missile attacks on vessels transiting through the Strait of Hormuz.
Goldman Sachs has revised its forecast for the average Brent price in the second quarter, raising it by $10 to $76 per barrel, anticipating further supply reductions through the strait and a decrease in inventories in OECD countries.