Oil Prices Rise at Market Opening
Oil prices began the trading session on Monday, March 23, on a bullish note, amid escalating tensions in the Middle East since February 28, particularly affecting the transport of hydrocarbons through the Strait of Hormuz.
The price of West Texas Intermediate (WTI) crude oil for May delivery rose by 1.78%, reaching $100.10. Meanwhile, Brent crude from the North Sea, also for May delivery, increased by 1.73% to $113.44 just minutes after the trading session began.
This rise comes against a backdrop of intense diplomatic tensions. U.S. President Donald Trump threatened on Saturday, March 21, to destroy Iran’s energy infrastructure if Tehran did not fully reopen the Strait of Hormuz to maritime navigation within 48 hours. In a message posted on Truth Social, he warned that the United States might prioritize targeting key Iranian energy facilities.
Additionally, on March 20, the United States announced a temporary measure allowing the sale and delivery of Iranian oil stored aboard tankers at sea before that date, extending until April 19. According to the Treasury Department, this decision aims to curb the surge in energy prices by facilitating the rapid arrival of additional supplies to the international market.
Disruptions in the Strait of Hormuz, through which nearly 20% of the world’s oil and gas flow, coupled with repeated attacks on energy infrastructure in the region, continue to drive up prices in international markets.
