Global Oil Market Affected by US Warmongering
Brent crude oil prices closed with a $3.87, or 4.59%, increase at $88.10 per barrel, while US West Texas Intermediate (WTI) crude rose by $3.54, or 4.48%, closing at $82.49 per barrel. Both benchmarks are at their highest levels since mid-June.
Over the past week, both indices rose by approximately 16%, with Brent recording its third consecutive weekly gain and WTI its second weekly increase.
The US military, continuing its warmongering against the Islamic Republic of Iran, announced that it had completed the seventh night of attacks on Iran. The Islamic Revolutionary Guard Corps (IRGC) also announced that, as part of Operation Nasr 2, the US fleet’s fuel support pier, enemy aircraft assembly points, enemy intelligence data centers, and a US signals and telecommunications center were destroyed.
According to a Reuters report, Andrew Lipow, President of Lipow Oil Associates, said: “The market is reacting to the escalation of hostilities between Iran and the US, which reached a peak over the past week with nightly attacks on Iranian infrastructure and Iranian retaliation. If more tankers are damaged, we will see oil prices rise because ship owners will simply refuse to enter the Persian Gulf.”
The collapse of the ceasefire between the US and Iran has led to a severe reduction in oil flow through the Strait of Hormuz. Prior to the US-Israeli aggression against Iran, which began on February 28, approximately 20% of global oil supply flowed through this waterway.
According to new data released by Baker Hughes energy services company on Friday, the total number of active oil and gas rigs in the US increased over the past week, bringing the total rig count in the US to 588, which is 44 units higher than the same time last year.