Middle East tensions push oil prices to record levels

The atmosphere of war in the Middle East has shaken global energy markets, leading to a historic jump in oil prices. Brent crude closed the week with an 8.93 percent increase at 93.04 dollars, marking the sharpest weekly gain in the last six years.

US President Donald Trump's call for "unconditional surrender" from Iran has raised concerns that the conflicts could be prolonged and that global energy supplies could be severely disrupted. Growing uncertainties regarding supply have put pressure on oil markets.

The crisis in the region has been felt most significantly in the Strait of Hormuz, a critical point for oil transportation. It was reported that the number of tankers passing through the strait has decreased and that transportation has nearly come to a standstill. Qatari Energy Minister Saad al-Kaabi stated that if the Strait of Hormuz remains closed, oil prices could rise to 150 dollars per barrel. Kaabi noted that this possibility could have serious devastating consequences for world economies.

Iraq's suspension of its 1.5 million barrel-per-day oil production and Kuwait's decision to begin reducing production due to full storage capacity have further deepened the supply contraction in the market. Natasha Kaneva, Head of Global Commodities Research at JPMorgan, emphasized that the concern in the markets is not limited to geopolitical risks, but that actual production cuts and logistical problems are also being reflected in prices. Kaneva is of the opinion that if the Strait of Hormuz remains closed for a long time, the weekly production loss could reach 6 million barrels.

As the war between the US and Iran enters its eighth day, US Secretary of Defense Pete Hegseth stated in a press conference that "we are still at the beginning of the war." The possibility of the process dragging on continues to escalate anxiety in energy markets.

News Source: 12punto