Military conflicts in the Middle East and the threat of the closure of the Strait of Hormuz have led to a sharp rise in oil prices in the global market. For the first time since 2022, the price of oil has crossed the $100 threshold. According to Deutsche Welle, on March 9, the price of Brent crude oil rose by nearly 20 percent to $111.04 per barrel. WTI crude oil rose to $106.17. For comparison, prices were stable at around $70 before the situation escalated.
The main reason for the market concerns is the threat of the closure of the Strait of Hormuz, through which 20 percent of the world's oil supply passes. In order to prevent an energy crisis, US Treasury Secretary Scott Bessent is considering the possibility of partially easing the sanctions imposed on Russian oil. In particular, a 30-day special concession was granted to India for the purchase of Russian oil.
The escalation of this situation was caused by Israel's airstrikes on Iranian oil infrastructure on March 7. After five major energy facilities around Tehran were attacked, Iran threatened to strike oil facilities of other countries in the Persian Gulf in response. This further increases instability in the global fuel market and worries investors.
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