Brent crude oil prices surge above $90/barrel for the first time in 2 years after President Trump earlier today claimed”there will be no deal with Iran” and told Iran to “surrender.”
Brent crude rose $5.50, or 6.5 percent at the time of writing to trade at $90.91 per barrel in early session dealings, while US West Texas Intermediate gained $27.86, or 9.7 percent to reach $88.8.
Murban crude skyrocketed by 6.45 percent to $100.6 per barrel.
Supply pressures have increased as key Asian crude processing countries all decided to cut oil production.
Latest trends show both WTI and Brent racing towards higher levels with many analysts predicting new base at $95 per barrel in the coming days.
Some analysts on X opined that energy markets often react to logistics more quickly than prroduction. Since tensions are very high around the Gulf region, it was always natural for first signals like tanker rates, war-risk insurance and shipping premiums to show up.
An X user told ProPakistani that this confuses those on market watch to declare that oil is getting pricier. In such cases, energy rates cool off after a few sessions but prolonged disruptions can easily factor in all negatives to push oil rates very high.