Brent crude was quoted at $106.37 a barrel on Wednesday, and West Texas Intermediate (WTI) at $94.72. Iranian officials said their forces planned to expand strikes in the Strait of Hormuz and to use new tactics. Iran has also warned the United States that it is prepared to respond preemptively if it perceives a threat of renewed strikes on its territory.
The rise is in crude oil rather than a stated change in refined petrol. Priyanka Sachdeva, an analyst at Phillip Nova, said Iran’s latest statements suggested the country could use its position in the strait to keep prices elevated and to put pressure on the world economy.
Why crude moved
Iranian officials said forces planned to expand strikes in Hormuz and to use new tactics. That is the immediate backdrop to the higher crude benchmarks. Sachdeva said Iran could use the passage to keep oil prices up and press the global economy.
Reports say Netanyahu pressed Trump last week to restart attacks before the US midterm elections in November. The same reports say Trump told Netanyahu to prepare but made no firm commitment to resume hostilities. Nothing in the official comments cited here confirms that exchange.
Pipeline capacity and tanker risk
ING commodity analysts also described a development that could later weigh on prices. Saudi Arabia plans to expand the East-West pipeline, and the analysts said that added capacity could reach 1.2 million barrels a day within months.
It is still uncertain how much additional oil could reach global markets. The open question is the risk facing tanker shipments. Until those cargoes can move, the extra pipeline capacity is only a possible source of lower prices.
Timeline: what has happened so far
- Last week: reports say Netanyahu pressed Trump to restart attacks before the US midterm elections in November, and that Trump told him to prepare without a firm commitment to resume hostilities.
- Wednesday: Brent crude was quoted at $106.37 a barrel and WTI at $94.72 as Iranian officials said forces planned to expand Hormuz strikes with new tactics.
- Within months: ING analysts said Saudi Arabia’s East-West pipeline expansion could add 1.2 million barrels a day and put downward pressure on prices.
Aasan alfaaz mein
Budh ke din beiruni market mein kacha tel mehnga hua. Brent 106.37 dollar har barrel aur WTI 94.72 dollar har barrel par pohoncha. Iran Hormuz mein hamle barha kar naye tareeqe apnane ki baat kar raha hai, is liye tel ki qeemat upar reh sakti hai. Saudi Arabia ki pipeline kuch mahinon mein rozana 1.2 million barrel barh sakti hai, jis se qeemat par neeche dabao aa sakta hai. Pakistan main petrol pump ki qeemat is khabar mein alag se nahi batayi gayi.
