Two-week high: How high will the price of a barrel of oil climb?

Diplomatic contacts between Washington and Tehran have encountered a significant obstacle, directly affecting the global energy market. After Iran presented its conditions for a peace agreement, US President Donald Trump responded with a demand that Iran pay compensation for victims of wars, attacks, and protests. This exchange led to a deadlock in talks on opening the Strait of Hormuz — a critical shipping route — and caused an immediate spike in oil prices.

At the center of the tension is the Strait of Hormuz, a vital maritime passage for the transit of oil globally. Attempts to reach agreements on its opening have stalled following the mutual demands of the parties. Energy market experts assess that the situation has become a war of attrition where each side is trying to see who will bend first, and estimate that oil prices will remain in the high range of 75 to 95 dollars per barrel as long as no breakthrough is recorded.

As a result, oil prices recorded sharp increases: Brent crude climbed to 88 dollars per barrel, and US oil rose to 82.45 dollars. The rise in energy prices increases concern ahead of the publication of the Consumer Price Index in the USA, as an inflation figure higher than expected could lead the central bank to raise the interest rate again. At the same time, the rise in fuel prices and the tension in the Gulf have led to fluctuations and great caution in stock trading in Asia and in futures contracts in the USA and Europe.