Oil Prices Rise in the Global Market

Renewed tensions between Iran and the United States have once again impacted the global oil market. On Wednesday (May 27), global oil prices crossed 100 US dollars per barrel.

Following the latest US strikes, hopes for a possible agreement with Iran have faded, further complicating the situation in the Middle East. Analysts believe oil prices are rising due to the ongoing crisis surrounding the Strait of Hormuz and growing uncertainty in the market.

Earlier, at the end of last month, oil prices had surged past 126 dollars per barrel because of the conflict and disruptions to energy transportation through the Strait of Hormuz. However, in recent weeks, many traders had expected Gulf countries to resume oil exports through diplomatic solutions. Based on that expectation, Brent crude prices had dropped to around 97 dollars on Monday.

Last week, energy research firm HFI Research said the oil market may have reached a stage where a quick return to normal conditions could become difficult.

According to analysts, global oil reserves have declined due to weeks of supply disruptions. At the same time, demand for transportation fuel is expected to increase during the summer travel season.