The escalation of oil does not stop and ‘black gold’ destroys forecasts day in and day out. If just a few days ago experts warned of a possible rise to $100, now that figure is already old. The escalation of the war in Iran, the disruptions in the Strait of Hormuz and the cuts to production in the Middle East have given a new boost to crude oil, which skyrocketed by more than 15% and has even surpassed the level of 110 dollars. And the conflict is only spreading throughout the Middle East. The consequences of the attacks between the US and Israel against Iran, and vice versa, are already reaching Tehran’s energy infrastructure, which has further intensified the fear of a lack of supply. On Sunday, attacks occurred on several Iranian oil facilities, causing fires and dense smoke over Tehran and the neighboring city of Karaj. And this Monday the Israeli army announced the start of a new wave of attacks against the infrastructure of the «terrorist regime» in central Iran. In addition, the conflict has also crossed the lines of Saudi Arabia, to the point that the US government on Monday ordered its government employees to leave the country due to the increased risks derived from armed conflict, terrorism and missile and drone attacks from Yemen and Iran. This is the first exit order of this type issued by Washington in Saudi Arabia since the start of the war. And the escalation of the conflict has also caused several oil producers in the Middle East, specifically the United Arab Emirates, Kuwait and Iraq, to announce this Monday plans to cut production, which has led crude oil to react strongly, registering deep increases that have taken the price of a barrel to exceed $110, although the ‘black gold’ has subsequently relaxed. It should be remembered that the last time oil prices exceeded the level of $110 per barrel was after Russia invaded Ukraine in 2022. Now the rise in crude oil prices may even continue up to $120, as some experts are beginning to warn, in the heat of what is happening in the Strait of Hormuz. Ship traffic has completely stopped, as shipping companies have preferred to avoid the waterway after Tehran threatened to attack ships trying to cross the strait. And this is a serious problem for the energy market, since Hormuz is one of the most important oil choke points in the world, through which approximately 20% of the crude oil that meets global demand circulates.
