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News Wire / economy

Oil Prices Volatile Amid Hormuz Strait Concerns

BBC Radio 4 London 14d13d Impact 9

Oil prices could remain above $100 per barrel through the end of the year if the Gulf crisis continues, according to scenarios discussed on BBC Radio 4. Analysts warn oil prices could hit $120, $150, or $200 per barrel if full-scale war breaks out. Traders reacted to Donald Trump's comments regarding the end of the war by interpreting them as a signal of a potential total blockade of the Hormuz Strait, causing panic buying of oil futures. The crisis has reportedly created a new funding line for Iran, as they can charge approximately $1 million per ship to transit the strait. It is expected to take a long time for the global economy to return to normal trade flows. Before the conflict in the Persian Gulf, Brent crude prices were trading at 73-74 dollars per barrel. Such a price surge would bring the global economy close to an energy-driven recession threshold.

Oil prices could remain above $100 per barrel through the end of the year if the Gulf crisis continues, according to scenarios discussed on BBC Radio 4. Analysts warn oil prices could hit $120, $150, or $200 per barrel if full-scale war breaks out. Traders reacted to Donald Trump's comments regarding the end of the war by interpreting them as a signal of a potential total blockade of the Hormuz Strait, causing panic buying of oil futures. The crisis has reportedly created a new funding line for Iran, as they can charge approximately $1 million per ship to transit the strait. It is expected to take a long time for the global economy to return to normal trade flows. Before the conflict in the Persian Gulf, Brent crude prices were trading at 73-74 dollars per barrel. Such a price surge would bring the global economy close to an energy-driven recession threshold. This threshold is defined by the World Bank and IMF as the point where energy costs exceed 5% of global GDP. Rerouting tankers around the Cape of Good Hope is cited as a high-cost alternative to the strait. There are concerns regarding the stability of oil reserves in the region. Markets are in a state of dynamic anticipation regarding statements from the Trump administration. Following recent discussions of the strait, stocks rose and oil prices fell slightly, though Wednesday's statements caused markets to drop and oil prices to rise.

Topics

oil prices inflation interest rates Gulf crisis

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Sources · 7 independent

BBC Radio 4

“if the crisis continued, the oil price stayed where it was this morning until the end of the year and remained above $100 and gas prices were higher too, inflation could end up at 6%.”

CNN Turk Radyo

“Petrol'un varil fiyatı 120 doları da açtı. İran meclis başkanı Kali Baf göz dağıverdi 140 doları işaret etti.”

CNN Turk Radyo

“Ulusal arası piyasalarda varil fiyatı 120 dolara açtı. Artışta ABD leğinin arasında tırmanan gelilim belirleyici oldu.”

bsopera

“Petróleo dispara a US$ 126 após ameaça de bloqueio prolongado dos EUA ao Irã.”

NBC News Radio

“Brent crude prices rose about 3% overnight, briefly climbing above $120 a barrel. Meantime, a new Kepler report shows Iran is losing as much as $250 million a day in oil revenue and is running out of space to store oil.”

WAMU 88.5 DC

“Oil prices have hit a new high since the start of the U.S. and Israel's war with Iran. The price of a barrel soared above $120 before pulling back”

WAMU 88.5 DC

“Oil prices have hit a new high since the start of the U.S. and Israel's war with Iran. The price of a barrel soared above $120”

WDR 5

“Die Rendite von Bundesanleihen ist seit dem Ausbruch des Irankrieges deutlich angestiegen. Das hängt damit zusammen, dass die Energiepreise stark gestiegen sind.”

WDR 5

“Feske-Zinsen seit dem Ausbruch des Irankriegs so stark gestiegen wie seit 2023 nicht mehr. Auch wenn die EZB also erst einmal die Pausetaste drückt, die Märktepreise in den nächsten Zinsstress schon längst berechnet.”

Business FM Russia

“Слишком высокая цена нефти может навредить рынку, заявил в видце пример Александр Новок. По его словам, ближний восточный конфликт лишь краткосрочно повлияет, позитивно влияет на экономику, поскольку в России получают дополнительные доходы.”

France Info

“le baril de Pétrole a atteint un niveau inédit depuis 2022 ce matin au-delà des 125$ le baril parce que Donald Trump envisage un long blocus du détroit d'Ormouse”

Radio Svoboda

“the price of a barrel of oil exceeded 120 dollars.”

Radio Svoboda UA

“the price per barrel of oil exceeded 120. This follows reports that Donald Trump prefers a long-term blockade of the ports of Iran and the Strait of Hormuz”

Radio Svoboda

“В среду цена забары ль нефти превысила 120 долларов. ... появились сообщения о том, что Дональд Трамп предпочитает долгосрочную блокаду портов Ирана и армузского пролива”

Radio Svoboda UA

“Всереду цена за бар ілл нефти превисила 120.”

Radio Svoboda UA

“по енергетичній системі Ірану. Всереду цена за бар ілл нефти превисила 120.”

Radio Svoboda

“Джером Пауэл дал пресс-инференцию, на которой предсказал высокую инфляцию в ближайшем будущем из-за войны на Ближнем Востоке.”

Radio Svoboda UA

“Всереду цена за бар ілл нефти превисила 120. Іх очередний резкий іскачок був зафіксував, після того, як появились сообщення, що Дональд Трамп предпочитає долгосрочну блокаду портов Ферану і армузського пролива”

ADN Radio Chile

“esperaba una contracción en el precio, finalmente será un alza de hasta 35 pesos por litro en el caso de las bencinas de 93 y 97 octanos.”

ADN Radio Chile

“esperaba una contracción en el precio, finalmente será un alza de hasta 35 pesos por litro en el caso de las vencinas de 93 y 97 octanos.”

ADN Radio Chile

“The expectations point to more expensive fuels in the short term, moving away at least for now the possibility of relief for consumers.”

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