Global oil prices surged by more than $3 per barrel on Monday, 11 May, after hopes for ending the US-Iran conflict faded due to disagreements over the latest peace agreement proposal between the two sides.
Brent crude oil prices rose $3.18, or 3.14%, to $104.47 per barrel, extending gains from the previous Friday.
Meanwhile, US West Texas Intermediate crude increased by $3.09, or 3.24%, to $98.51 per barrel, following a positive close in the prior session.
The global oil market had anticipated that the protracted US-Iran conflict, ongoing for over 10 weeks, might soon end, allowing oil shipments through the Strait of Hormuz to return to normal.
However, those hopes collapsed after President Donald Trump stated on Sunday that Iran's proposal to the US-drafted peace plan was unacceptable.
This situation further pressured the global energy market, as the Strait of Hormuz is one of the world’s most important oil shipping routes, with massive daily oil volumes from the Middle East passing through it.
Tony Sycamore, a market analyst from IG, noted that market attention is now focused on Trump's visit to China, as many hope Beijing will use its influence to pressure Iran into accepting a ceasefire agreement and help ease the Strait of Hormuz crisis.
Amin Nasser, CEO of Saudi Aramco, revealed that in the past two months the world has lost about one billion barrels of oil, and even if shipments resume normally, the energy market will require a long time to regain stability.
Data from shipping tracker Kpler also indicated that last week at least two oil tankers transporting crude through the Strait of Hormuz disabled their tracking systems to avoid the risk of Iranian attacks.
This trend reflects that energy operators are taking special measures to maintain oil exports from the Middle East amid ongoing military tensions with no signs of easing.
Source:channelnewsasia
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