look news india
New Delhi/New York | There was a stir in the global energy market this morning when crude oil prices once again reached the highest level in four years, leaving behind Monday’s slight fall. As Asian markets opened on the morning of Tuesday, April 7, both West Texas Intermediate (WTI) and Brent crude saw strong surges. This rise has come at a time when tension between America and Iran is at its peak and a ‘deadline’ from President Donald Trump has increased the heartbeats of investors.
Did the news of Iran-US ceasefire turn out to be just a rumour?
Earlier there was talk in the market that an agreement could be reached between America and Iran regarding a ceasefire, but Iran has completely rejected these reports. Iran clearly says it has put forward its conditions to end the war, which has now entered its sixth week. After this clarification, crude oil prices got further support. At present US Crude (WTI) It is hovering around $113 per barrel, whereas on Monday it had even touched the level of $115. Whereas, the global benchmark brent crude is also trading above $110 per barrel.
Anxiety increased due to Trump’s ‘bridge and power plant’ threat
The biggest pressure on the market is due to the social media posts of US President Donald Trump, in which he has given a strict deadline for opening the Strait of Hormuz. Trump has said in a very aggressive tone that the US military “has the capability to destroy every important bridge in Iran by 12 o’clock tonight.” Not only this, he has also warned of targeting Iran’s power plants. Experts believe that if such military action takes place, it would be a clear violation of the Geneva Convention, but Trump seems to be firm on his statements.
Iran ready to retaliate, threat to global economy
Iran has also refused to bow down to Trump’s threats. A statement has come from Iran that if America shows any courage, they will intensify their attacks on the energy infrastructure of the Gulf region. If this lifeline of energy supply is attacked, the entire world economy can suffer severe damage. According to Carl Larry, oil and gas analyst at Enverus, the situation is extremely delicate and if the matter escalates to military action, the consequences could be catastrophic.
WTI premium at record level, loot of American oil
Due to fear of disruption in the supply chain, there is a race among foreign buyers to buy American crude oil. On Monday, WTI’s prompt spread (the difference between the two nearest contracts) reached $ 15.5 per barrel, which is close to the largest premium ever. Analysts believe that as long as uncertainty remains regarding the Strait of Hormuz, there is little hope of softening of oil prices.
