Iran-US Tensions Spike Crude Oil Prices

New York. With the tensions between Iran and America escalating again, the price of crude oil in the international market has reached its highest level in several weeks. The price of oil increased by about 1 percent in Asian trading the day after US President Donald Trump said the peace agreement with Iran had ended.

Concerns have increased that further disruption to the world market's energy supply from West Asia may occur after Iran targeted ships passing through the Strait of Hormuz. This is analyzed as the reason for the rise in oil prices in the international market.

Crude oil's international benchmark Brent crude price rose by about 1 percent on Thursday to $78.80 per barrel. Similarly, the US benchmark West Texas Intermediate (WTI) crude also rose at the same rate to $74.30 per barrel.

With this increase, the price of oil has neared the level seen in mid-June. At that time, the US and Iran had announced an interim agreement to discuss ending the conflict. The current price is still below the level at the beginning of the price war. When the war started, the price of crude oil in the international market had reached about $120 per barrel.