Brent crude oil surged past $117 a barrel as markets watched rising tensions over Iran and risks to supplies from the Persian Gulf. The price reached $117.08 a barrel, up 3.45 percent.
This is the highest level for Brent since April 29. U.S. light crude WTI also rose significantly – by 3.79 percent, to $103.24 per barrel.
Tehran warns of retaliatory strikes
The upward movement in prices intensified after Tehran warned that in the event of a new US-Israeli offensive against Iran “it will strike oil facilities, submarine cables, data centers and artificial intelligence facilities“ in the Persian Gulf region.
The warning increased concerns that a possible new military operation could affect not only oil infrastructure, but also key communication and technological sites in the region. It is the risk of supply disruption or restriction that supports the rise in the price of the raw material.
Markets monitor supply security
According to CNBC, investors are mainly reacting to the uncertainty surrounding the development of the conflict and the possible consequences for transport and oil production. If the situation worsens again, attention will remain focused on the facilities in the Persian Gulf and possible supply restrictions.
Brent's movement above $117 per barrel puts the international benchmark close to its highest levels since late April. The market remains sensitive to any military or political development that could change the assessment of the security of energy routes.
Sources: bta.bg