Oil Prices Hit Five-Month High After US Strikes on Iran
Global oil markets react to US-Iran escalation as Brent and WTI rise, with fears that closing the Strait of Hormuz could drive prices to $150 a barrel.
- Publish date: since 2 day
Oil prices rose to a five-month high on Monday, June 23, after the US struck Iran's nuclear sites over the weekend.
Brent, the benchmark for two-thirds of the world's oil, rose by 0.48 per cent to $77.38 a barrel, while West Texas Intermediate increased by 0.50 percent to $74.21 per barrel.
In early trading, Brent's price spiked by 5.7 percent to $81.40, which is its highest level since January this year.
Iran's state-owned media cited a legislator on Sunday, June 22, revealing that the country's parliament agreed to close the Strait of Hormuz, which is the gateway to almost a fifth of the world's daily oil output. However, the country's national security council is yet to make a final decision, according to the report.
If this were to happen, oil prices could skyrocket to $150 a barrel, according to analysts. On the same day, US Secretary of State Marco Rubio requested that China stop Iran from closing the strait since China is Iran's key oil importer.
The war between Iran and Israel began on Friday, June 13, which led to an escalation of attacks between the two countries, closure of air spaces, cancellation of flights, and extensive evacuations.
This article was previously published on UAE Moments. To see the original article, click here