Energy Insider | International oil prices surge over 12% at opening; Iran bans navigation through the Strait of Hormuz, causing a large number of oil tankers to be stranded in the Persian Gulf, disrupting the oil market

Caixin News

International Oil Prices Surge Over 12% at Opening

On March 2, international oil prices opened sharply higher, with the main futures contracts for UK Brent and US WTI crude reaching a high of $82.37 and $75.33 per barrel respectively during the day, up 12.5% and 12% from the previous trading day’s close. Subsequently, both contracts gradually declined, and by press time, Brent and WTI had fallen to $78.4 and $72 per barrel, representing an increase of about 7.5%.

Iran Bans Navigation Through the Strait of Hormuz, Large Number of Oil Tankers Stranded in the Persian Gulf Disrupt Oil Market

Caixin reported on March 1 that the situation between Iran and Israel has rapidly escalated since February 28. The Iranian Revolutionary Guard claimed that no ships are authorized to pass through the Strait of Hormuz, which could cause ongoing volatility in the oil market. Even during previous Middle Eastern wars and Iran-Iraq conflicts, the Strait of Hormuz has never been officially closed. Satellite data shows that dozens of cargo ships are stranded in the Arabian Sea, waiting for the security situation to clarify before passing through the Strait of Hormuz, most of which are oil tankers. Although the Iranian Revolutionary Guard has issued a ban on ships passing through the Strait of Hormuz, Caixin found that some vessels are still attempting to pass through the southern route from the Persian Gulf.