Oil prices jump to their highest levels since November amid escalating geopolitical risks
Global oil prices rose sharply during today's trading, reaching their highest levels since last November, driven by growing concerns over disruptions to Iranian oil supplies after the US announced new tariffs on countries that trade with Iran.
The rise came after US President Donald Trump said Washington would impose a 25% tariff on any country that continues to import or trade with Iran, reigniting market concerns about a decline in Iranian oil exports in the coming period.
Fears of a decline in global oil supply
The possibility of a decline in Iranian supplies contributed to a change in market sentiment, limiting the previous wave of pessimism that had been caused by expectations of abundant global oil supplies.
However, there are still concerns that this US move could escalate trade tensions with major importers of Iranian oil, chief among them China, which accounts for the bulk of Iran's oil exports.
Any tension between the US and China on this issue could lead to increased oil price volatility and disrupt global trade in the energy sector.
Developments in Venezuela add further uncertainty
On the other hand, markets are closely monitoring political and economic developments in Venezuela, as it is a major oil producer and any changes in its production or exports could directly affect the balance of supply and demand in the global oil market.
Strong rise in Brent and West Texas crude
prices In terms of trading, Brent crude prices rose by about 2% to $64.60 per barrel, while West Texas Intermediate crude rose to about $60.40 per barrel, with both crudes recording their fourth consecutive session of gains, indicating continued upward momentum in energy prices.
Market outlook
Energy analysts believe that oil price movements in the coming period will remain largely linked to developments in US sanctions on Iran, as well as any developments related to China and Venezuela, which makes the market vulnerable to further volatility in the short term.
