Middle East war increases world tension, crude oil prices surge
Since the war began, the price of Brent crude oil has risen by more than 17 percent. US West Texas Intermediate crude rose $3.33, or 4.7 percent, to settle at $74.56, its highest settlement since June. Meanwhile, US crude prices reached $77.97 per barrel during Tuesday's trading session.
The Middle East War has suddenly increased global tensions, and there's a reason for that. Crude oil prices have already seen a dramatic increase. Since the war began, crude oil prices have risen by more than 17 percent.
On Tuesday, crude oil prices in the international market surged by 10 percent, surpassing $85 per barrel, a 52-week high. Petrol and diesel prices have already increased in the US.
It's estimated that this war could last another month. In such a situation, crude oil supplies could be disrupted, which could impact prices. Let's also tell you what kind of crude oil price data is being seen in the international market.
Sharp rise in crude oil prices
According to data, crude oil prices in the international market rose by nearly 10 percent on Tuesday. Gulf crude oil hit a 52-week high of $85.12 per barrel during the trading session.
After the market closed, Brent crude oil prices rose 4.70 percent to $81.40 per barrel. Currently, Brent crude prices are trading at $82.70 per barrel.
Since the war began, the price of Brent crude oil has risen by more than 17 percent.
US West Texas Intermediate crude rose $3.33, or 4.7 percent, to settle at $74.56, the highest settlement since June. During Tuesday's trading session, US crude prices reached $77.97 per barrel. Currently, US crude oil prices are trading at $75.69 per barrel.
Iraq cuts supplies
Israeli and US forces bombed targets in Iran on Tuesday, prompting Iran to launch retaliatory strikes around the Gulf, spreading the fighting to Lebanon. Iraq, the Organization of Petroleum Exporting Countries' No. 2 crude producer after Saudi Arabia, has cut production by about 1.5 million barrels per day.
This cut could more than double within days as the country runs out of storage space for crude it cannot export due to the crisis. Iran has responded by attacking regional energy infrastructure and tankers in the Strait of Hormuz, through which a fifth of the world's oil and liquefied natural gas typically passes.
Iran's attack continues to intensify
Tankers and container ships are avoiding the strait after insurance companies canceled coverage for vessels and global oil and gas shipping rates soared. Concerns grew on Monday after Iranian media reported that Iran would fire on any vessel attempting to pass through the strait.
Analysts at Standard Chartered wrote in a note that Iran's retaliatory strikes have been more extensive than its previous, mostly symbolic measures, and have created several regional flashpoints, posing a real threat to supplies. President Donald Trump said the US and Israeli airstrikes are expected to last four to five weeks, but could be longer.
Looking for another supplier
India and Indonesia have said they are looking for alternative energy supplies. In China, some refineries are shutting down or bringing forward maintenance plans. Since the attacks began, Qatar has halted liquefied natural gas production,
Israel has halted production at some gas fields, and Saudi Arabia has shut down its largest refinery. Saudi oil giant Aramco is trying to reroute some crude exports to the Red Sea to bypass the Strait of Hormuz, where the threat of attacks has virtually halted shipping.