Four trade sources reported that some major oil and trading companies have temporarily suspended crude oil and fuel shipments through the Strait of Hormuz, in light of the continued US and Israeli attacks on Iran, and Tehran’s response to these attacks. This is what was reported by Reuters.
A senior executive at a trading company confirmed: “Our ships will remain in place for several days.”
Last Saturday, America and Israel carried out an attack on Iran, which US President Donald Trump described as “massive” and would last for several days.
Barclays Bank expected the price of Brent crude to rise to about $80 per barrel in the event of major supply disruptions.
The bank added: “While it is entirely possible that the escalation will not lead to a supply disruption and that the $3-5 per barrel risk premium in oil prices will quickly disappear, a supply disruption of 1 million barrels per day will increase doubts about the widely expected oversupply and push Brent to $80 per barrel.”
Oil prices rose nearly 2 percent on Friday, as traders anticipated supply disruptions after nuclear talks between the United States and Iran failed to reach an agreement. The price of Brent crude settled at $72.48 per barrel.
