Oil prices rose at the beginning of the week on a day that is closed for many markets around the world due to the second day of Easter, amid continued concerns about supply disruptions caused by the conflict between the United States and Israel on the one hand and Iran on the other, which affects the key energy region of the Middle East, Reuters reported, BTA reported.
Brent futures rose by $ 1.71, or 1.6 percent, to $ 110.74 a barrel in Asian trade.
U.S. light crude oil prices are up by $ 0.71, or 0.6 percent, to $ 112.25 per barrel.
Markets reacted sharply to the escalation of tensions at the end of last week. On the last trading day before the Easter holidays, US crude prices jumped by more than 11 percent, and Brent crude by nearly 8 percent, which was their biggest daily increase in 2020. The increase came after statements by US President Donald Trump that military action against Iran would continue.
The key Strait of Hormuz, through which a significant part of oil exports from countries such as Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates pass, remains largely blocked due to Iranian attacks on shipping since the conflict began on February 28.
Due to supply difficulties, refineries around the world are looking for alternative sources of crude oil, including supplies from the US Gulf Coast and the North Sea. The search for these alternatives is leading to more aggressive bidding and further supporting prices.
Yesterday, Donald Trump increased pressure on Tehran, threatening new strikes on energy and infrastructure facilities if the strategic strait is not opened.
Despite the tension, individual ships continue to pass through the Strait of Hormuz, reflecting Iran's selective policy of allowing vessels from countries it considers friendly.
Meanwhile, the prospects for a quick end to the conflict remain limited. According to media reports, Iran has informed mediators that it is not ready for talks with the US in the coming days, which puts truce efforts at a dead end.
Additionally influencing the market is the decision of the OPEC+ format to increase production by 206,000 barrels per day in May. However, this growth is expected to remain limited in practice, as some leading producers are having difficulty increasing production amid the conflict.
In addition, Russian supplies have also been affected by drone attacks on energy infrastructure in the Baltic Sea, although according to the latest information, the Ust-Luga terminal resumed operations late last week, Reuters adds.