Oil Prices at Seven-Week High Due to Middle East Tensions
Conflicts between the US and Iran have impacted energy markets. Brent crude prices reached a seven-week high, while experts warned of new risks.
As the escalating US-Iran tension in the Middle East stirs the energy markets, the barrel price of Brent crude reached $99.67 to hit a seven-week peak, and global institutions began evaluating new price scenarios.
Brent Crude at Seven-Week High
Developments in the Middle East directly affected energy markets, with the barrel price of Brent crude hitting $99.67 in the early hours of trading, nearing the $100 mark.
As a result of the activity in the markets, Brent crude reached its highest level in approximately seven weeks, becoming the focus of investors.
Growing Tension Between US and Iran
The US-Iran tension, ongoing since March, continues to be the main cause of volatility in oil prices, while reciprocal moves have heightened concerns.
US forces destroyed five Iranian crude oil tankers near Kharg Island in response to an attempted missile attack on a warship in the Gulf.
High Price Warning from Goldman Sachs
Daan Struyven, Co-Head of Global Commodities Research at Goldman Sachs, pointed out the risk that oil prices could exceed $120 if the conflicts escalate.
Experts state that potential prolonged disruptions in shipping routes will directly drive up global energy costs.
Strait of Hormuz Impasse
An analysis prepared by Trive Investment stated that Iran conditioned the opening of the Strait of Hormuz on the lifting of the US blockade.
The US side's refusal to accept Iranian control of the passage in the strait keeps tensions and supply concerns high in the region.