New wave of price increases expected on global energy market
U.S. missile strikes on Bandar Abbas, Asaluyeh, Chabahar and other cities on the Iranian coast of the Gulf have again led to the complete closure of the Strait of Hormuz.
This time, the U.S. used destructive Tomahawk cruise missiles.
As AZERTAC reports, only 22 vessels passed through the Strait of Hormuz under the protection of U.S. naval forces over the past 3 days. However, before the start of military operations, 130 vessels passed through the strait per day. In response to the bombings, Iran launched missile strikes on U.S. military bases located in Kuwait, Jordan, Qatar and Saudi Arabia.
According to the New York Times, after the strikes, oil prices on world stock exchanges rose by 5 percent. According to a report by the International Energy Agency, during a period of relative calm, 16 million barrels of oil were exported to the world market from Middle Eastern countries. Although demand for oil decreased due to the summer season, prices still rose. However, the price per barrel of oil has not yet reached 100 dollars. The cost of gasoline in the U.S. and European countries increased by 30 percent compared to the period before the start of military operations. Therefore, the U.S. does not intend to continue military operations, but cannot achieve its goals and the situation remains tense.
Due to increased tensions in the Gulf, the price of 1 barrel of Brent oil today is 78.85 dollars, WTI - 74.12 dollars, and Azeri Light - 85.93 dollars. There is a 5 percent increase in prices compared to last week.
Currently, a new wave of price increases is expected to begin on the global energy market. Fortune magazine, citing experts, writes that the price of oil could rise to 90 dollars. The first reason for the increase is the tension in the Strait of Hormuz. The second is the rapid depletion of world oil reserves. The third is the ban on the export of Iranian oil to the world market and the start of large-scale purchases of "black gold" by China at the end of August in preparation for winter. All these factors disrupt the principle of supply and demand on the market.
However, the rise in oil prices also creates problems in the U.S. itself. Fuel costs in the country are rising, which leads to increases in prices for other consumer goods and services. In this situation, the price increase poses a threat to the re-election of members of President Donald Trump's party in the midterm congressional elections in November. This does not play into the hands of the "Republicans." Therefore, official Washington does not want further escalation of the situation and a prolonged closure of the Strait of Hormuz and is trying to rectify the situation. Time will tell how all this will end.
