There has been a sharp increase of more than 40 percent in the prices of crude oil in the international market within the last 15 days. Due to the ongoing war between America, Israel and Iran, serious concerns regarding energy supply in West Asia have increased. In particular, the impact of the Strait of Hormuz has increased the pressure on the global energy market, especially on Asian countries.
What do the figures say?
Before the war started, on February 27, crude oil was trading at around $73 per barrel in the international market. By Saturday its price had increased to around $103 per barrel. In this way, in just 15 days, the price of oil increased by $ 30 per barrel, which is equivalent to a jump of about 41.1 percent.
Tension continues since February 28
The current military confrontation between the US and Iran is said to have intensified since February 28, when US and Israeli forces carried out widespread attacks targeting Iran’s military bases and top leadership. This conflict has further increased the markets’ concerns about global energy supply.
What is the opinion of experts regarding the market?
Experts say that the impact of increasing tension in West Asia will be clearly visible on global markets in the coming days. Enrich Money CEO Ponmudi R said that the coming week can be very volatile, because the eyes of investors will be completely focused on the developments related to this conflict. He said that the direction of the market in the coming week will largely depend on the developments related to the ongoing conflict in West Asia. Investors will keep a close eye on what government officials of the respective countries and global stakeholders indicate towards escalating tensions or a diplomatic solution. According to Ponmudi R, the impact of this conflict will not be limited only to crude oil prices, but will also affect global bond yields, currency markets and the risk appetite of investors. He said that special focus will remain on the Strait of Hormuz, as it is counted among the most important energy supply routes in the world. Experts believe that if the movement of oil and gas through the Strait of Hormuz remains disrupted for a long time, it could lead to further tightening of global oil supply. This will impact inflation expectations in Asia and there may remain an environment of uncertainty and pressure in global markets.