Soaring crude oil, “small price to pay” according to Trump
Around 7:30 a.m., a barrel of West Texas Intermediate (WTI, reference for the American market), soared 15.51%, to $104.96. Earlier in Asian trading, it had soared more than 30% to $119.48.
The barrel of Brent from the North Sea, a benchmark for the world market, rose 17.42% to 108.82 dollars, after having exceeded 119 dollars.
Since the start of the American-Israeli offensive against Iran, the WTI has appreciated by some 60%, unheard of in such a short period.
Even Russia’s invasion of Ukraine, which saw the barrel rise to $130.50 in early March 2022, did not cause such violent movements.
On the tenth day of the conflict, energy markets remain suspended on developments in the Middle East, where the Strait of Hormuz, through which approximately 20% of the world’s supply of oil and liquefied natural gas (LNG) passes, remains almost paralyzed.
While the unprecedented surge in prices is already penalizing American consumers, Donald Trump quickly reacted on his Truth Social network, declaring that this heatwave was a “very small price to pay for the peace and security of the United States and the world”.
Hormuz blocked, production at half mast
Certainly, on Friday, the American Development Agency DFC announced the establishment of a reinsurance mechanism to facilitate the coverage of risks linked to the passage of the Strait of Hormuz, up to 20 billion dollars.
The United States is currently working with shipowners who wish to get their tankers out of the Persian Gulf, US Energy Minister Chris Wright insisted on Sunday.
“In the early stages, these ships will probably be under American military protection,” he added, predicting a return to normal traffic “in the relatively near future.”
But these signals were not enough to reassure: for fear of attacks, traffic remains almost paralyzed in the strait – with press reports only mentioning the passage of a few ships identifying themselves as Chinese.