World oil prices have surged sharply, approaching the psychological limit of $100 per barrel. As of 20:08 Bulgarian time, the international benchmark Brent (Brent) is trading at levels around 97.50 – $98.00 a barrel, posting a steady daily gain after a devastating weekend in the Middle East. U.S. light crude WTI also rose to close $92.60 per barrel.
The main driver of the market rally is the dramatic escalation of the conflict between the United States and Iran. Over the weekend, American forces carried out air strikes and disabled three Iranian oil tankers. Their actions were in response to ballistic missiles fired by the Islamic Revolutionary Guard Corps (IRGC) against two US warships.
As a result of the attacks, commercial ship traffic through the key Strait of Hormuz – through which one-fifth of global supplies pass – fell to a record low of just 10 ships per day, according to the analytics company Kpler. The situation is further complicated by Tehran's announcement that it plans to introduce a new no-shipping zone in the region.
Leading financial institutions are already warning of serious economic consequences. The Investment Bank Goldman Sachs signaled on Bloomberg TV that the price of crude oil could quickly $120 per barrel if attacks on ships continue and geopolitical tensions are not contained.
Inflationary pressures are already being felt around the world. In the US, average fuel prices at gas stations reached record levels for the Labor Day holiday weekend. Against this backdrop, Energy Secretary Chris Wright acknowledged to the media that markets remain highly volatile, but the administration is doing everything possible to stimulate domestic production to contain the crisis.