Oil shows record growth in three months: reason is conflict between US and Iran

World oil prices are showing the fastest weekly growth in recent months against the backdrop of the escalation of the conflict between the US and Iran. Investors are afraid of possible disruptions in the supply of energy through strategically important sea routes in the Middle East.

This is reported by Bloomberg.

During trading on Friday, the cost of Brent oil exceeded USD 85 per barrel, while American WTI approached the USD 80 mark. Over the week, both oil benchmarks added about 12%, their biggest gain since April.

The price jump was caused by new US strikes on targets in Iran and Tehran's subsequent response. In addition, the market was alarmed by information about possible threats to shipping in the Red Sea region.

The situation around the Strait of Hormuz, one of the key routes for transporting oil in the world, is of greatest concern. A significant part of global energy exports pass through it.

Experts believe that if the conflict further escalates, oil prices may continue to rise. In particular, American WTI is capable of rising to the mid-USD 80s per barrel if geopolitical tensions do not subside.

In addition to oil, the situation has already affected the oil products market. Logistics disruptions are affecting the supply of gasoline and diesel fuel, which contributes to the growth of oil refining companies' profitability.

As Ukrainian News Agency earlier reported, on July 15, Iran stated that it no longer considers the memorandum of understanding with the United States to be valid.