Oil Prices Rise in Global Markets Amid Iran’s Unrest
According to British news agency Reuters, on Tuesday, the price of Brent crude increased by $1.06 per barrel, or 1.7%, reaching $64.93, marking the highest level since mid-November. Similarly, the price of West Texas Intermediate (WTI) crude in the United States rose by $1.02 per barrel, or 1.7%, reaching $60.52.
Analysts say that Iran, being a key member of OPEC, plays a crucial role in global oil supply. The ongoing protests and security concerns in the country are creating supply risks. British bank Barclays has reported that the unrest has added a geopolitical risk premium of $304 per barrel to oil prices.
U.S. President Donald Trump has warned that countries trading with Iran could face a 25% tariff. Since Iran exports a large portion of its oil to China and other countries, this U.S. warning has heightened market concerns.
Meanwhile, the potential increase in oil supply from Venezuela has provided some positive effect, but it is insufficient to completely offset the supply risk. The U.S. administration has stated that around 50 million barrels of oil will be supplied from Venezuela, but political and technical complications make the actual delivery uncertain.
