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The Middle East war has suddenly increased the tension in the world. There is a reason for that too. A tremendous increase has been seen in the prices of crude oil. Ever since the war started, the price of crude oil has seen an increase of more than 17 percent. On Tuesday, there was a 10 percent increase in the price of crude oil in the international market, and the price crossed $ 85 per barrel. Which is a high of 52 weeks. There has been an increase in the prices of petrol and diesel in America. It is estimated that this war may continue for another month. In such a situation, the supply of crude oil may stop. The effect of which can be seen in the prices. Let us also tell you what kind of figures of crude oil prices are being seen in the international market.

Tremendous rise in crude oil prices

If we look at the data, there was an increase of about 10 percent in the prices of crude oil in the international market on Tuesday. Crude oil from Gulf countries appeared at a 52-week high at $85.12 per barrel during the trading session. Whereas after the market closed, the price of Brent crude oil showed an increase of 4.70 percent at $ 81.40 per barrel. However, at present the price of Brent crude is seen at $ 82.70 per barrel.

Ever since the war started, the price of Brent crude oil has seen an increase of more than 17 percent. US West Texas Intermediate crude rose $3.33, or 4.7 percent, to settle at 74.56, the highest settlement since June. However, during the trading session on Tuesday, the price of American crude had reached $ 77.97 per barrel. However, at present the price of American crude oil is seen at $ 75.69 per barrel.

Iraq cuts supplies

On Tuesday, Israeli and US forces bombed targets in Iran, prompting Iran to retaliate around the Gulf, after which the fighting spread to Lebanon. Iraq, the No. 2 crude producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, has cut production by about 1.5 million barrels per day. This cut could more than double within a few days as the country is running out of storage space for crude which it cannot export due to the crisis. Iran has responded by attacking regional energy infrastructure and tankers in the Strait of Hormuz, through which one-fifth of the world's oil and liquefied natural gas typically passes.

Iran's attack continues to intensify

Tankers and container ships are avoiding the strait after insurance companies canceled coverage for ships and global oil and gas shipping rates soared. Concerns grew after Iranian media reported on Monday that Iran would open fire on any ship attempting to pass through the strait. Iran's retaliation has been broader than its previous, mostly symbolic measures, and has created several regional flashpoints that pose a real threat to supplies, Standard Chartered analysts wrote in a note. President Donald Trump said US and Israeli airstrikes are expected to last four to five weeks, but could last longer.

Looking for another supplier

India and Indonesia said that they are looking for alternative energy supplies. In China, some refineries are closing or bringing forward maintenance plans. Since the attacks began, Qatar has halted production of liquefied natural gas, Israel has halted production at some gas fields and Saudi Arabia has closed its largest refinery. Saudi oil giant Aramco is trying to reroute some crude exports to the Red Sea to bypass the Strait of Hormuz, where the threat of attacks has brought shipping to a near halt.

gasoline and diesel

US diesel futures rose nearly 10 percent to their highest level since October 2023. US gasoline futures rose nearly 4 percent to $2.46 a gallon, their highest level since July 2024. Crack spreads, which measure refining profit margins, reached their highest level since 2023.

In the global natural gas market, benchmark Dutch contracts, British gas prices and European and Asian LNG prices all rose. The premium of Brent against WTI increased to almost $ 8 per barrel, which is its highest level since November 2022. Analysts have said that when this premium goes above $4, it can support US crude exports.

US crude and distillate stocks rose last week, while gasoline inventories fell, according to Market Source, citing American Petroleum Institute data on Tuesday. Crude oil inventories rose by 5.6 million barrels in the week ended February 27, more than analysts' estimates, as energy companies added 2.3 million barrels to storage. The official US oil inventory report will come from the Energy Information Administration on Wednesday.

Russian Deputy PM's statement

Russia claimed on Tuesday that India has shown renewed interest in purchasing large quantities of crude oil from Russia after energy supplies were disrupted due to the closure of the Strait of Hormuz due to US and Israeli attacks on Iran. Russia's Deputy Prime Minister Alexander Novak told state TV Rossiya on the sidelines of an event in Moscow that yes, we are getting signs of new interest from India. 20 percent of the world's total oil supply and a significant portion of LNG exports pass through this narrow waterway. It connects the Persian Gulf to global markets.

If the Strait of Hormuz is affected for a long time, energy supplies to major importers including India, China and Japan may be disrupted and global crude oil prices may increase. Novak, who oversees Russia's energy sector, did not rule out the possibility that the European Union may also relax its decision to cut Russia's hydrocarbon imports in view of the energy crisis.