WTI prices jumped by almost 20 percent on Sunday. in one day, reaching the price $108 per barrel. Brent prices increased by 16%. to level $107 This is another price jump for the raw material as a result of the US and Israel's war with Iran. Since last week, the price of WTI has increased by as much as 58%, which, according to CNBC, is the fastest price increase since 1983.
The last time the price of Texas crude oil broke above $100. in March 2022, just after the Russian invasion of Ukraine began.
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The rising costs of raw materials are the result of the closure of the Strait of Hormuz, through which usually 20 percent of gas flows. sea transport of crude oil. The closure of the strait prevents exports through the Persian Gulf countries. Several countries — Iraq, the United Arab Emirates and Kuwait — have cut production because they are running out of space to store oil.
Fuel prices are rising just as quickly
Rising oil prices resulted in rapid increases in prices at gas stations in the US, by an average of 15%, which is also the fastest growth since the Russian invasion in 2022.
US President Donald Trump has so far downplayed the importance of price increases, claiming that they will fall quickly after the end of hostilities.
Energy Secretary Chris Wright offered the same perspective in television interviews on Sunday. “We will soon see more regular ship traffic through the Strait of Hormuz,” Wright told CNN. — We are currently far from normal traffic. This will take some time. But I repeat, in the worst case it will be a few weeks, not months, he announced.
