A huge jump in crude oil prices has been seen on the 9th day of the ongoing military conflict between Iran and America. Iran’s Foreign Minister Seyed Abbas Araghchi has named it ‘Operation Epic Mistake’ and said that America is plotting to attack their oil and nuclear facilities. Due to this war, commodity and gas prices are increasing rapidly across the world. On the other hand, after the death of Ayatollah Ali Khamenei in Iran, Ayatollah Mojtaba Khamenei has been elected the new Supreme Leader.
🚨: Oman Government Statement: Oman gave a big statement, showed a strong stance against the attack on Gulf countries.
Huge jump in the prices of crude oil and gas
Brent and WTI crude oil prices have almost doubled since the war began on February 28. Crude oil had reached $120 per barrel in the market, which now remains between $102 to $112. Shipping movement has been severely affected in the Strait of Hormuz, where 20 percent of the world’s crude oil passes.
Gas prices in Europe have increased by a whopping 30 percent. There is a possibility that food items across the world will be affected due to the supply of fertilizers being affected. Petrol prices in America have increased by 50 cents in a week to $3.48 per gallon. Bahrain’s national oil company has declared force majeure regarding its supplies after the attack on the refinery.
Global market and its impact on common people
This conflict has had a direct impact on the global stock market. Due to fear of prolonging the war, major stock markets like Nikkei 225 and FTSE 100 have fallen by 5 to 8 percent. G7 countries are discussing emergency supply of crude oil from their strategic oil reserves to control inflation. This is a matter of great concern for the expatriates living in Gulf countries and oil importing countries like India, because due to cost of oil, transport and everyday things also become expensive.
US President Donald Trump has said that this increase in energy prices is a small price and has demanded the Iranian government to surrender without any conditions. At the same time, Iran says that they are fully prepared to deal with every situation and they also have many surprises for their opponents. Along with this, Israel is continuously attacking military command centers and fuel depots in Isfahan, Tehran and Alborz, due to which the situation has become more tense.