Middle East crisis Oil market

Oil Analyst: “We are facing a dramatic night”

A sharp escalation of the Iran war could have long-term consequences for the oil price. This is what oil analyst Helge André Martinsen at DNB Carnegie tells E24.

Martinsen points out that there is a gap between spot prices and longer-term contracts, where the latter have risen significantly less during the war.

What is certain, he says, is that Iran will respond with targeted attacks on oil and gas infrastructure if the US and Israel make real the threats to attack infrastructure such as bridges and energy facilities.

“We are facing a dramatic night,” says Martinsen.

He also points out that deadlines have previously been postponed “time and time again,” something that SEB analyst Ole Hvalbye also emphasizes.

Oil prices rise at 1 p.m., after reports of explosions on Kharg Island. Brent oil is up 1.2 percent to $110 a barrel, while WTI oil is up 2.5 percent to nearly $115 a barrel.

Chinese and Russian no to opening the Strait of Hormuz

China and Russia cast their vetoes in the UN Security Council in a vote to reopen the Strait of Hormuz. The resolution from Bahrain lost by 11-2, several media outlets report.

Bahrain's Foreign Minister Abdullatif bin Rashid Al Zayani is very critical and believes that Iran's closure sends the wrong signals to the world and the world's population.

- The signal that threats to international shipping lanes are occurring without decisive action from the international organization responsible for maintaining peace and security.

Colombia and Pakistan abstained from voting. Even if the resolution had been adopted, it is unlikely that the strait would have actually been opened, writes the AP news agency.