Oil prices rose on Wednesday by about 1.2 percent, with Brent crude surpassing the $110 per barrel level, amid escalating tensions in the Middle East and growing pressures on the diesel market. By 09:00 GMT, Brent crude futures rose by 1.2 percent to about $110.16 per barrel. US crude futures also rose by 1.4 percent, reaching about $99.19 per barrel.
This increase comes amid ongoing uncertainty regarding global oil supplies, with escalating tensions in the Middle East and continued concerns related to oil tanker movements through the Strait of Hormuz. The global diesel market is facing increasing pressures, prompting member countries of the International Energy Agency to agree, last Thursday, to accelerate the release of about 100 million barrels of oil reserves, including more than 20 million barrels of diesel, as soon as possible.
Concerns over the Strait of Hormuz
The rise in oil prices coincides with continued targeting of oil tankers in the Strait of Hormuz, a key passage for global energy trade. On Tuesday, the Iranian Revolutionary Guard naval forces announced an explosion on a large oil tanker after it struck a sea mine south of the Strait of Hormuz. In a statement, it said the tanker has a capacity of about two million barrels of oil and attempted to cross the strait via a route described as "unauthorized."
Political and military developments
In a political and military development related to regional tensions, the British "Financial Times" reported on Wednesday that US President Donald Trump rejected a plan by Israeli Prime Minister Benjamin Netanyahu to launch a "major attack" on Iran before the midterm congressional elections. Fatih Birol, Executive Director of the International Energy Agency, said the agency is ready to coordinate the withdrawal of additional oil reserves from member countries if necessary. The military escalation began with the US-Israeli aggression against Iran on February 28, followed by a ceasefire in April.
Source: Anadolu Agency
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