Oil Prices Rise as Middle East War Impacts Global Economy
Al-Taj News – The Middle East war has had several repercussions for the global economy. Below are the latest economic repercussions of the war:
- Oil prices rise –
Oil prices rose after US President Donald Trump dashed hopes of a quick end to the war, confirming that US forces would continue bombing Iran for another two to three weeks and threatening to return it “to the Stone Age.”
US West Texas Intermediate (WTI) crude futures jumped 10.3% to $110.47 per barrel.
Benchmark global North Sea Brent crude also rose 8.2% to $109.40 per barrel.
All major Asian stock markets closed notably lower, while European indices declined in afternoon trading.
- Meeting on the Strait of Hormuz –
British Foreign Secretary Yvette Cooper said Thursday that around 40 countries participated in a video meeting on the Strait of Hormuz crisis, calling for its reopening “immediately and unconditionally.”
In a statement following the talks, Cooper said, “Iran is trying to hold the global economy hostage in the Strait of Hormuz. It must not succeed. That is why partners today called for the immediate and unconditional reopening of the strait, and for respect for the fundamental principles of freedom of navigation and the law of the sea.”
- Iraq exports oil through Syria –
Iraq, whose oil sales account for more than 90% of its revenues, announced that it had begun exporting oil by tanker trucks through Syria, while the bulk of its exports remain halted due to the closure of the Strait of Hormuz.
Iraq, a member of OPEC, used to export an average of 3.5 million barrels per day before the war began with a US-Israeli attack on Iran on February 28. Most of this production was exported through the ports of the southern Basra Governorate overlooking the Gulf.
The Iraqi Ministry of Oil said, “In order to support the national economy and provide financial revenues to the state treasury, the Ministry of Oil has begun exporting black oil by tanker trucks through neighboring Syria.”
- Iran allows oil shipments to pass to the Philippines –
