Oil Prices Soar Amid US-Iran War Tensions
Oil prices have experienced significant volatility this century, influenced by various global events. One such event is the ongoing US-Iran war, which has effectively blocked the Strait of Hormuz, through which almost 20% of the world's oil is transported. As a result, Brent North Sea crude reached a peak of $126.41 a barrel at the end of April.
The main US contract, West Texas Intermediate (WTI), hit as high as $119.48 a barrel in early March. However, hopes for de-escalation and weaker demand from China caused prices to fall back in June. The recent escalation in US-Iran strikes has seen Brent top $100 once more.
Another significant event that affected oil prices was Russia's invasion of Ukraine in 2022. Crude futures climbed above $100 in February, soon after the invasion. In March of that year, prices approached their 2008 highs, with Brent reaching $139.13 a barrel and WTI $130.50.
The COVID-19 pandemic also had a profound impact on oil prices. During the pandemic, scarce storage facilities and a Saudi-Russia price war caused the market to tumble, with WTI slumping to minus $40.32 and Brent tanking to a record low of $15.98.