Crude Oil Prices Surge in Global Markets Amid US-Iran Talks Deadlock and Tanker Attack Reports
NEW YORK; International crude oil prices surged after missing any tangible steps on the path to peace between Iran and the United States despite the continued talks between them, and as attacks against oil tankers grew more frequent. Prices for both the main crude benchmarks jumped more than $1 during trading sessions.
Market reports said Brent crude was up $1.45 (1.67%) to $88.52 per barrel, and US West Texas Intermediate (WTI) crude was up $1.15 to $82.40 per barrel.
The weekly forecasts also have upward prospects for both benchmarks, with Brent up almost 6 percent and WTI closing in on a weekly gain of 5.4 percent.
Expectations of more attacks and less significant progress in ceasefire talks are pushing markets into the ascendant ahead of the weekend, according to oil market expert Andrew Lipow. He cautioned that if the disturbance of shipping in the Strait of Hormuz continues to grow, it may turn into a big economic crisis.
The Strait of Hormuz is a significant waterway that is a key choke point for global oil trade, making the possibility of a prolonged closure of the shipping lanes a serious risk to oil supplies and potentially further price increases.
The failure to reach an agreement in the Middle East negotiations and the renewed threat to tankers are causing major concerns about supplies. The conflict between Israel and the Palestinians has taken a new turn in the Middle East, as the region’s tensions continued to escalate, with US President Donald Trump claiming the Strait of Hormuz could become US property at any time.