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Raw petroleum prices are spanning more than 4% in the midst of the fears that the United States could join the Israel offensive against Iran.
Oil prices have increased in the middle of the fears that the Israeli-Iranian crisis can slide towards a broader conflict involving the United States.
Brent North Sea Crude and West Texas Intermediate – the two most popular oil landmarks – increased by 4.4% and 4.3, respectively, on Tuesday, when US President Donald Trump demanded a “unconditional rendering” of Tehran.
The landmarks amounted to $ 76.45 per barrel and $ 74.84 per barrel, respectively, after the jump.
Oil prices increased more at the start of negotiations on Wednesday, the two benchmarks approximately 0.5% higher at 03:30 GMT.
American actions fell on the increase in geopolitical tensions overnight, the reference S & P500 and the Nasdaq composite heavy in technology decreasing by 0.84% and 0.91% respectively.
Israel has bombed several petroleum and gas facilities in Iran since Friday, including the South Pars gas field, the Fajr gas plant, the Shahran Oil Depot and the Shahr Rey oil refinery.
Although there has been little disruption of global energy flows so far, the possibility of climbing – including direct participation of the United States in the military offensive of Israel – has put the markets at the forefront.
Trump accelerated his rhetoric against Iran on Tuesday, which added to the fears that his administration could order a military strike against Iranian uranium enrichment facilities in Fordow.
In a barely veiled threat against the supreme Iranian chief of Ayatollah Ali Khamenei, Trump declared in a social post of truth that the United States knew his location but would not make him kill, “at least for the moment”.
Iran has the third world reserves of crude oil and the second gas reserves, although its scope as an energy exporter has been strongly restricted by the sanctions led by the United States.
The country produced around 3.99 million barrels of crude oil per day in 2023, or 4% of the world supply, according to the US Energy Information Administration.
Iran is also on the Hormuz Strait, which serves as a duct for 20 to 30% of world oil expeditions.
Almost all Iran oil exports leave via the Kharg Island export terminal, which has so far been spared by Israeli bombings.
“In the context of the search to destabilize Iran, Israel can choose to make its speeds, believing that working to finish a hostile diet is worth the risk of alienating allies concerned by the potential price escalation,” wrote Clayton Seigle, a senior member of the Center for Strategic and International Studies in Washington, DC, in a Monday analysis.
“Israeli strategists are probably aware that Iran’s oil export capacity is quite vulnerable to disturbances.”
