Expert explains Trump’s impact on oil prices
The escalation of American threats to resume strikes on Iran caused oil prices to rise by more than 4%, with Brent crude surpassing $108 per barrel and West Texas Intermediate reaching $96. This increase was driven by geopolitical concerns surrounding the potential reopening of the Strait of Hormuz, the intensification of the Russia-Ukraine conflict, and attacks on Saudi oil facilities. These factors have delayed market stability and led to higher production costs, prompting oil companies to adjust their plans to focus on the medium term rather than the short term, with expectations that the situation will persist until the first quarter of next year. Data also showed that oil exports from the Gulf region rebounded to 12.8 million barrels per day, the highest level since tensions began, though still about 6 million barrels below the levels of February 2022.
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