The situation on the oil market is quite tense today. Due to the recent escalation in the relationship between the United States and Iran, the latter has taken to wreaking havoc in the Middle East lately, upset by the US-imposed sanctions. After several drone incidents and “surprise” explosions, last week Iran seized control over a British tanker. According to Iran’s Revolutionary Guard, this was retaliation against the United Kingdom seizing an Iranian tanker a few weeks ago.
Right now it’s unclear what the United Kingdom plans to do. The Iranian army was able to keep another British war ship from intervening. The United States is also on alert after the drone shooting incidents. Overall, it is expected that there will be supply interruptions due to the tense atmosphere in the region.
As a result of the market uncertainty and the possibility for lower supply, the price of crude oil started increasing. The Brent crude reached $63.35, while the WTI touched $56.21.
