The price of Brent crude oil exceeded $119 on Wednesday afternoon. per barrel. This is the eighth consecutive day of growth in the raw material bottoms. The reason is concerns about prolonged difficulties in maritime transport through the Strait of Hormuz.
Oil prices rose by more than 6% on Wednesday after President Donald Trump announced that he would maintain the US naval blockade of Iran until a nuclear deal is reached.
U.S. West Texas Intermediate crude futures also rose more than 6%. up to $106 per barrel.
“A blockade is slightly more effective than a bombing,” Trump told Axios on Wednesday.
Attempts to continue negotiations to end the war have stalled in recent days. Iran has refused to reopen the Strait of Hormuz until the United States lifts the blockade. Tehran's control of the strait has blocked oil exports from the Middle East.
Energy market participants were also weighing the consequences of the UAE's sudden decision to withdraw from OPEC, although analysts said the decision was likely to have limited impact on the market in the short term given the ongoing crisis in the Middle East.
