Written by: Fatima Younes
Oil prices saw an increase in recent trading, with Brent crude futures rising by about 0.6 percent to reach levels of $113.83 per barrel, while US crude futures rose by 1 percent to record $100.4 per barrel.
These price movements are driven by growing concerns in global markets regarding disruptions to energy supplies, especially in light of current geopolitical developments in the Middle East, and the targeting of energy infrastructure in both Russia and Ukraine, which has led to disturbances in the diesel market.
Implications of political tensions on energy markets
A state of uncertainty dominates the global oil scene as a result of continuing confrontations and military and political tensions. In a related context, US President Donald Trump indicated in his remarks from the White House his country's actions towards Iran, expressing his view regarding voters' reactions to fuel prices and developments related to the Iranian file ahead of the midterm congressional elections.
On the other hand, the Iranian Revolutionary Guard announced the targeting of four ships in the northern part of the Arabian Gulf, claiming they were carrying out oil cargo transport operations. These developments come at a time when markets are anticipating any potential repercussions of the military tensions that have witnessed periods of mutual escalation since last February, followed by a ceasefire and then renewed confrontations amidst a state of stall in negotiation paths, despite previous understandings that were signed in mid-June.
