Oil Returns to Growth with 6.6% Weekly Rise
The article discusses a significant rise in oil prices amid escalating geopolitical tensions. Brent crude increased by 6.6% to reach $93.92, up from the beginning of the week, while US light crude rose by 5.6% to $86.64. This upward trend is attributed to US President's threats to impose sanctions on Iran, raising fears of a potential oil supply shortage—especially given Iran's current reduced exports due to US sanctions and the possibility of disruptions in oil transit through the Strait of Hormuz. Although shipping activity through the strait remains low, alternative sources of supply such as shale oil and Venezuelan exports are contributing to increased availability. However, these factors do not rule out the possibility that oil prices could return to $100 if tensions persist and US-Iran negotiations remain stalled.
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