Oil price suddenly exceeds $80 amid rising regional tensions
Oil prices witnessed a sudden increase of 13% this morning, Monday, pushing the price of a barrel above $80, amid growing concerns about disruptions in oil supplies due to U.S. and Israeli strikes on Iran.
By 23:15 GMT, Brent crude recorded a rise of 9.90% to reach $80.16 per barrel, after opening the markets with an initial increase of 13%.
Meanwhile, West Texas Intermediate jumped to $72.55 per barrel, an increase of 8.25%, according to the "Associated Press".
Concerns are rising due to threats facing maritime transport through the Strait of Hormuz, through which about 20% of global oil consumption passes.
Although the strait has not been completely closed, navigation has become nearly impossible, with only a few Chinese and Iranian ships crossing.
Following the attack that targeted two ships yesterday, Sunday, off the coasts of the UAE and Oman, the Secretary-General of the International Maritime Organization, Arsenio Dominguez, urged shipping companies to "avoid" the area, which could significantly raise insurance costs.
Despite oil-importing countries having strategic reserves sufficient for 90 days, some experts predict that prices could exceed $100 per barrel if the escalation continues.
In contrast, OPEC+ countries have moved to boost production, as Saudi Arabia, Russia, and six other member states of the alliance raised their production quotas by 206,000 barrels per day for April, a figure higher than expectations, with a scheduled meeting on April 5 to monitor developments.
Brent crude is the international benchmark for crude oil and has gradually risen in recent days to over $72 on Friday, after starting the year at $61 per barrel, amid increasing geopolitical risks in the region.
