The energy crisis has resurfaced due to tensions between the US and Iran, with crude oil prices recording a large increase in global markets.
Global financial markets were in turmoil on Tuesday, as renewed military clashes between the US and Iran have raised concerns about disruptions to oil supplies from the Middle East. The latest clashes led to a significant increase in crude oil prices, while major stock markets around the world reacted differently.
Brent crude oil prices have reached around $86 to $87 per barrel, while the price of US benchmark West Texas Intermediate has exceeded $80 per barrel. In addition, Emirati Murban crude oil is trading at $83.16 per barrel.
Both prices rose by about 3 to 4 percent yesterday, pushing Brent to its highest level in about a month. According to experts, if tensions in the Middle East escalate further and energy infrastructure is damaged, oil prices could return to around $100 per barrel.
According to Tim Waterer, chief market analyst at KCM Trade, if diplomatic efforts are successful and the Strait of Hormuz reopens, Brent oil prices could remain between $75 and $80 per barrel. Experts say that currently oil prices include the additional impact of war risks, but both sides have reasons to seek a diplomatic solution, so the price trend is not completely one-sided.
Read also: Trump Credits Iran Deal for Stabilizing Oil Markets and Energy Flow
