Oil prices surge after US strikes on Iran with Strait of Hormuz status in focus

Future oil contracts increased by up to 5 % on Sunday night after the United States strikes on the three main nuclear sites in Iran, and fears have intensified the trauma of possible show, amid increasing fears that Taraan could decrease by closing a major naval point.

Brent raw (bz = f), international standard, gained up to 5.7 %, hovering over $ 80 a barrel. The futures contracts in West Texas (CL = F) also jumped over 4 % to hover about $ 77 a barrel.

Oil prices had already recorded weekly gains on Friday after the conflict between Israel and Iran erupted slightly more than a week ago.

On Sunday, traders have created possible revenge moves from Iran, a major oil producer and source, following the United States’ direct participation.

According to the government media, the Iranian parliament voted to close the Strait of Hormuz. The final decision stabilizes whether the biological waterway – which takes over 20 % of the global oil flows – will be closed with the Iranian National Security Council and the supreme leader Ayatollah Ali Khameneini.

Wall Street once sees as a low -stability event that is now dealt with as a significant risk.

“If oil exports are affected by the Strait of Hermoz, we can easily see $ 100 of oil,” said Andy Leipo, President of Lipow Oil Associats.

After the outbreak of the Iran war, the Iranian analysts expected that it was “with a” severe result “, the closure of the Strait of Hormuz could push oil prices to $ 120 a barrel.

If crude ascends to this range, analysts expect gasoline and diesel prices to rise by $ 1.25 per gallon.

“Consumers will discuss the average price of national gasoline at about $ 4.50 per gallon – to 6.00 dollars if you are in California,” Lebo said.

Other possible revenge moves of Iran can include the support of the Houthi rebels in Yemen in renewable attacks on commercial shipping.

If the conflict escalates and the United States or Israel targets the oil export infrastructure in Iran, analysts warn that Tehran may take revenge by hitting export facilities in neighboring countries.

“In other words,” if we cannot export our oil, you cannot have you, “Lebo said.

“On Sunday, it is not just a possibility of disturbance, but the time it takes.

She said: “If the infrastructure is beaten, but it can be quickly restored, it may fight the raw in order to make gains.” “But if Iran’s response causes permanent damage or the risk of supply in the long run, we will likely see a stronger and more sustainable move.”

Last week, JPMorgan analysts noted that since 1967 – along with the YOM Kippur War in 1973 – none of the 11 major military conflicts that involve Israel had a permanent impact on oil prices.