Global Oil Prices Skyrocket As Iran Closes Strategic Strait Of Hormuz
Global Oil prices have skyrocketed due to the closure of the Strait of Hormuz, through which 20% of the world’s oil and gas passes.
The development occurred after Iran launched strikes, targeting three tankers from the U.S. and the U.K. in the strategic waterway.
The vessels struck by missiles are burning, per reports, though the U.S. and the U.K. have not given any confirmation.
Iran warned vessels not to pass through the Strait, hence international shipping at its entrance has come to a complete halt, with analysts fearing that a prolonged conflict could drive the oil prices even higher in the coming days.
At 02:00 GMT, Brent crude was over 4% higher at $76.16 (£56.53) a barrel, while US-traded oil was also up by 4% at $69.67.
The OPEC+ group of oil-producing countries decided to raise their production by 206,000 barrels a day to provide a cushion, but this wouldn’t help much, per experts.
The UKMTO stated that several incidents were reported in the last two days from the Arabian Gulf region and the Gulf of Oman.
Per reports, around 150 tankers dropped anchor in the Gulf waters near the Strait of Hormuz, involving ships flagged to Gibraltar, Marshall Islands, Palau and Liberia, though some Iranian and Chinese ships passed through safely.
In another incident, help was sent to evacuate the crew, but the cause remains unclear.
Maersk stated that its vessels will not pass through the Bab-el-Mandeb Strait and the Suez Canal, and it will reroute ships around the Cape of Good Hope.
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
Related Posts
eBooks you will like to read
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
Related Articles
Latest News
Subscribe To Our Daily Newsletter
By subscribing, you agree to our Privacy Policy and may receive occasional deal communications; you can unsubscribe anytime.
BE THE FIRST TO COMMENT