Hormuz crisis sends oil prices soaring: New fuel price hike alarm

The impact of developments in the Middle East continues to be felt in global energy markets. While sharp fluctuations in prices are occurring due to conflicts in the region and risks to oil shipments, Brent crude has risen back above the $100 level.

Brent crude, which had climbed as high as $119.50 at the beginning of the week, had tested the $82 level following a sharp drop on Tuesday. In trading yesterday and today, however, it was observed that prices have begun to rise again.

THE STRAIT OF HORMUZ EFFECT

According to information reported by Türkiye Gazetesi, Brent crude finished the day yesterday at $93.60, an increase of 2.45 percent. It was stated that in the first trades conducted today, prices climbed as high as $101.60.

It was reported that Brent crude continued to trade around $100 during the morning hours.

It was conveyed that the shipment disruption in the Strait of Hormuz, which is under Iranian control, is effective in the rise in prices. It was noted that the bottleneck in oil flow, which corresponds to approximately 20 percent of global oil supply, is creating price pressure in the market.

TENSIONS ESCALATE

Attacks on merchant ships passing through the Strait of Hormuz using unmanned vehicles and the targeting of certain oil facilities in Oman have further raised tensions in the region.

Statements by Iranian military officials suggesting that oil prices could rise as high as $200 were also among the developments that drew attention in the markets.

STRATEGIC OIL RESERVE TO BE ACTIVATED

The International Energy Agency (IEA) announced that member countries have reached an agreement to release a total of 400 million barrels of strategic oil reserves into the market.

However, it was stated that the impact of this step on prices would be short-term and that it is not seen as sufficient on its own for a permanent decline.

EXPECTATION OF FUEL PRICE HIKES

The rise in oil prices has also brought domestic fuel prices to the agenda.

Yesterday, a reduction of 0.75 kuruş was made in the liter price of gasoline, and 1.15 TL in the liter price of diesel. However, following the renewed rise in Brent crude, the expectation that a new hike could be applied to fuel prices has emerged.

News Source: 12punto