Oil rises almost 30% in the week due to war in the Middle East

Oil reaches US$90 with war in Iran Oil prices soared by around 30% this week, to levels unprecedented since 2023, in a context in which the conflict in the Middle East paralyzes much of the flow of hydrocarbons from the Persian Gulf. 🗒️Do you have any reporting suggestions? Send to g1 The barrel of Brent from the North Sea closed this Friday (6) at 92.69 dollars, which represents an increase of more than 8% compared to Thursday and 27.88% in the week. Its American equivalent, West Texas Intermediate (WTI), closed at $90.90, up more than 12% for the session and 35.63% for the week. In just a few sessions, prices rose by more than 20 dollars per barrel. Since the beginning of the year, the increase has exceeded 30 dollars. “I’ve seen this type of situation before, but this is starting to take on dramatic proportions,” Ole R. Hvalbye, an analyst at SEB, told AFP. “I am very concerned about the long-term consequences”, in particular the onset of an economic recession, he adds. The increase in prices accelerated even further this Friday following statements by American President Donald Trump demanding a “capitulation” from Iran. The country is an important oil producer. But the conflict mainly had the consequence of paralyzing traffic in the Strait of Hormuz, through which approximately 20% of the world’s crude oil production passes. “The market is moving from a purely geopolitical assessment of risks to taking into account tangible operational disruptions”, JPMorgan economists highlight in a note. “Every day that the Strait of Hormuz remains closed, the oil market becomes more tense,” Giovanni Staunovo, an analyst at UBS, explained to AFP. Measures adopted Some Gulf countries have already been forced to reduce the pace of their activity. “Iraq has already reduced its supply by about 1.5 million barrels per day, and Kuwait appears to be reaching its storage limits and, in effect, closing most of its refining capacity destined for export,” according to JPMorgan experts. To prevent shortages, China asked its main refineries to suspend their diesel and gasoline exports, according to the Bloomberg agency. And on Thursday, the United States government authorized the supply of Russian oil subject to sanctions to India for a month, while the conflict in the Middle East directly affects New Delhi’s supply. The US Navy will escort merchant ships that attempt to cross the Strait of Hormuz “as soon as is reasonable”, US Secretary of Energy Chris Wright assured this Friday. “This may facilitate the resumption of traffic, but not at the level before the war”, warn analysts at Eurasia Group. According to Jason Gabelman, of TD Cowen, the market reaction has so far been “moderate” thanks to “healthy stocks” that “could cover up to a month of closure” of Hormuz. A navy ship is seen sailing through the Strait of Hormuz, through which much of the world’s oil and gas passes, on March 1, 2026. SAHAR AL ATTAR/AFP

Source link