Oil prices exceed $100 for the first time since 2022 0 14

Amid the war between the U.S. and Israel with Iran and the effective closure of the Strait of Hormuz, oil prices have surpassed the $100 mark for the first time since 2022. Futures for Brent crude oil, the benchmark in Europe, temporarily rose nearly 20% at the start of trading on Monday, March 9, reaching $111.04 per barrel (159 liters), according to Reuters.

Futures for U.S. West Texas Intermediate (WTI) crude oil increased by 16.8% to $106.17, while earlier in the session, they rose even higher to $111.24.

On Friday, March 6, Brent crude for May delivery traded above $90 for the first time since April 2024, while prior to the military operation against Iran, which began on February 28, the price was around $70 per barrel.

Concerns over a prolonged closure of the Strait of Hormuz

A key factor in the oil market remains concerns over a prolonged closure of the Strait of Hormuz, through which about 20 percent of the world's oil supply is transported daily during peacetime. It is also significant for the transportation of liquefied natural gas, for example, from Qatar.

In light of the tense situation in the global oil market, U.S. Treasury Secretary Scott Bessent stated on March 6 that Washington is considering easing sanctions on Russian oil already on board tankers. On the same day, the U.S. exempted Indian refineries from the ban on purchasing Russian oil already loaded onto tankers for 30 days so that "oil could continue to flow into the global market."

Airstrikes on Iran's oil infrastructure

On March 7, Israel carried out airstrikes on Iran's oil infrastructure for the first time, targeting five energy facilities in Tehran and its surroundings. In response, the Islamic Revolutionary Guard Corps (IRGC) threatened to attack oil facilities in the Persian Gulf countries. "If you can tolerate oil prices above $200 per barrel, keep playing the game," a representative of the IRGC was quoted by The Guardian.