Oil prices have risen due to the threat of a U.S. ground invasion of Iran
Global oil prices surged on Sunday after Tehran warned of a possible U.S. ground invasion.
The price of Brent crude, the global benchmark, rose 2.47% to $107.92 per barrel, while U.S. WTI gained 2.94% to reach $102.57 per barrel.
At the same time, stock futures fell: the Dow dropped 0.53%, or 241 points, the S&P 500 fell 0.46%, and the Nasdaq fell 0.48%.
The war in Iran has caused serious disruptions to oil supplies due to the closure of the Strait of Hormuz, through which about 20% of the world’s oil passes. Strikes on oil and gas facilities have also led to rising gasoline prices.
“Americans are paying for the consequences of the war at the gas pump: a gallon of gasoline in the U.S. averaged $3.98 on Sunday,” analysts noted.
Earlier, analysts at Macquarie Group Ltd. warned that the price of oil could reach a record $200 per barrel if the military conflict involving the U.S., Israel, and Iran continues until June and the Strait of Hormuz remains closed.
At the same time, oil prices on global markets recorded their sharpest weekly decline in the past six months.
