Oil prices have risen above $100 amid the blockade of the Strait of Hormuz
This is according to Reuters.
Brent crude oil futures rose by 7.05% to reach $101.91 per barrel. US West Texas Intermediate crude rose by 7.86% to $104.16 per barrel.
The price surge came after talks between Washington and Tehran on ending the war broke down. US President Donald Trump announced the start of a naval blockade and acknowledged that fuel prices could remain high until the mid-term elections in November.
Sol Cavanagh, head of energy research at MST Marquee, stated that the market had effectively returned to the conditions that existed prior to the ceasefire, but that the US could now block up to 2 million barrels of oil per day linked to Iran and passing through the Strait of Hormuz.
US Central Command has announced that the blockade will begin on Monday at 17:00 Kyiv time. The restrictions will apply to vessels from all countries entering or leaving Iranian ports. At the same time, according to CENTCOM, the US military will not obstruct the transit of vessels to ports in other countries.
Iran’s Islamic Revolutionary Guard Corps has warned that the approach of foreign military vessels to the Strait of Hormuz will be considered a violation of the ceasefire and will be met with a harsh and decisive response.
According to LSEG, most oil tankers are already attempting to bypass the Strait of Hormuz.
Separately, on 12 April, Saudi Arabia announced the resumption of full-scale oil pumping through the East-West pipeline at a rate of around 7 million barrels per day, following the repair of damage to energy infrastructure caused by recent Iranian attacks.
As reported by ThePublic, diesel fuel prices are rising rapidly. The sharpest price increase has been recorded at a popular petrol station – an extra 2.10 UAH per litre. The cost of Eurodiesel and branded products has also risen at other chains.
Follow us on Telegram
