The price of Brent crude oil on the London ICE exchange rose by more than 4.6%, according to trading data.
As of 7:59 a.m. Bulgarian time, the price of Brent crude oil had risen by 4.64%, reaching $105.99 per barrel.
As of 8:19 a.m. Brent slowed its growth and was trading at $105.65 per barrel (an increase of 4.3%).
Meanwhile, the price of futures for American light oil WTI has risen by 4.96%, reaching $100.15 per barrel.
The main reasons for high oil prices are related to serious geopolitical disruptions and logistical disruptions that directly affect global supply. The conflict between the US and Iran is the main driver of the market. Military action in the region, which began earlier this year, has led to the “largest supply disruption in history“ according to the International Energy Agency (IEA).
The Strait of Hormuz is closed to much of commercial shipping due to the risk of attack. About a fifth of the world's oil normally passes through this route, and its closure blocks huge volumes of crude in the Persian Gulf.
The uncertainty has investors adding a premium of $10 to $15 to the price of each barrel. Even news of diplomatic talks between Washington and Tehran has caused sharp fluctuations, but without a lasting drop in prices.
World reserves are depleting faster than expected as refiners try to compensate for the lack of physical supplies from the Middle East.
The approach of the summer season traditionally increases fuel consumption, which further puts pressure on prices in conditions of shortage.