Middle East crisis Oil market

Oil prices surge – highest levels since summer 2024

Oil prices surged on Thursday evening as the conflict in the Middle East deepens. The news that China is halting its energy exports and that Iran said it attacked a ship are also contributing to the gains, writes Bloomberg.

WTI oil is currently up just over 7 percent to over $80 per barrel – a level not crossed since July 2024. Brent oil is up over 3 percent to over $85 per barrel.

Refined fuel prices are also rising sharply. In Europe, the futures price of diesel has reached the equivalent of over $150 per barrel, a level not seen since the end of 2022.

Iran: We have “no intention” to close the Strait of Hormuz

Iran has “no intention” to close the Strait of Hormuz, but while the war is going on, the country will consider every scenario. This is what Iranian Foreign Minister Abbas Araghchi told NBC News.

At the same time, he points out that the country “is not asking for a ceasefire” with the United States.

– We see no reason why we should negotiate with the United States. We have negotiated with them twice and each time they have attacked us in the middle of the negotiations, Araghchi told NBC News.

Oil continues to rise – storage capacity a problem

Oil continues to rise to just under $84 after the conflict in the Middle East expanded when the United States attacked an Iranian warship off Sri Lanka.

The Strait of Hormuz is still blocked, and according to an estimate by JPMorgan, 329 ships are stuck in the Persian Gulf, and there are problems with storing oil in several places.

"Storage capacity in the Gulf Cooperation Council and current energy prices are limiting factors for how long the American campaign can last," writes JPMorgan.

Iraq, OPEC's second-largest oil producer, has cut production, and China has reportedly urged refiners not to sign new contracts for oil imports and to pause exports of diesel and oil.

Sources: India buys Russian oil – unclear what US says

Indian refineries are buying millions of barrels of Russian crude oil, according to sources to Reuters.

The country is said to be trying to deal with the energy shortage triggered by the conflict in the Middle East. Reuters raises the issue that New Delhi recently received reduced tariffs from the US in exchange for the country buying less oil from Russia, among other things.

One of the sources says that India has contacted the Trump administration to get the purchases approved. However, it is still unclear whether the White House has given the green light.