On Monday, significant increases in oil prices were recorded in global markets, caused by supply disruptions from the Middle East. This was due to complications in shipping arising from the war between the USA, Israel, and Iran, which led to restrictions on movement in this strategic region.
This is reported by Finway
Changes in the Oil Market: Prices and Player Reactions
The price of Brent crude oil futures rose by $1.71 (1.6%) to reach $110.74 per barrel. Meanwhile, West Texas Intermediate (WTI) oil gained $0.71 (0.6%), bringing its price to $112.25 per barrel. The day before, on Thursday, oil prices surged sharply: WTI increased by more than 11%, while Brent rose by nearly 8%. This is the largest increase since 2020, exacerbated by statements from US President Donald Trump regarding the intention to continue strikes against Iran.
Refineries are forced to seek alternative sources of raw materials due to the closure of the Strait of Hormuz, which Iran blocked after the onset of hostilities. Despite this, according to shipping companies, some vessels are still passing through the strait. Among them are a tanker operated by Oman, a French container ship, and a Japanese gas carrier. This indicates Iran’s policy of allowing the passage of vessels from countries it considers friendly.
Geopolitical Tensions and Impact on Supplies
Market participants note that demand for American oil from the Gulf of Mexico has increased, and the price of Brent remains on a rapid upward trend.
“Global buyers are actively bidding for American oil from the Gulf Coast, and the price of Brent is rising even faster,” stated the Schork Group.
At the same time, the threat of prolonged conflict continues: Iran has officially declined a meeting with US representatives in Islamabad in the coming days, and negotiations for a ceasefire are at an impasse.
On Sunday, OPEC+, which includes Iran’s allies, notably Russia, agreed to gradually increase oil production by 206,000 barrels per day starting in May, but the implementation of this agreement is in question – several key producers cannot ramp up production due to military actions.
In addition to the Middle East, supply issues have also arisen in Russia: drone attacks on oil terminals in the Baltic Sea have led to a temporary suspension of exports. In particular, the terminal in Ust-Luga resumed operations only after several days of disruptions.
Additional pressure on the market is created by statements from US President Donald Trump, who threatened to strike power plants and bridges in Iran if the Strait of Hormuz is not opened by Tuesday.
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