"We have gone from traders with ice in their veins to traders with panic in their veins. Prices shot up again when markets reopened after their weekend break, pushing north of $109. The panic is partly because there is no clear plan for reopening the Strait of Hormuz."
"In the days immediately following the U.S. and Israel's attacks on Iran, traffic quickly came to a near-halt through the Strait of Hormuz, a key waterway through which about 20% of the world's oil and liquified natural gas typically passes. And oil prices did rise but not wildly. At the time, traders calculated that markets could easily absorb a brief disruption."
"The continued closure of the strait has prompted Iraq and Kuwait to stop production in some fields, because there is nowhere to put the oil those fields would produce. The U.S. has offered to provide ships with insurance and naval escorts. On Friday, the agency responsible for offering that insurance said it could provide a total of up to $20 billion in coverage."
Brent crude oil prices exceeded $100 per barrel as energy markets opened following military tensions with Iran. U.S. gasoline prices jumped approximately 50 cents in one week, rising from $2.98 to $3.45, with analysts predicting a $4 national average. The Strait of Hormuz, through which 20% of global oil and liquified natural gas passes, faced closure after Iran's Revolutionary Guard attacked tankers. Initial market reactions were measured, with prices rising from $70 to $80, but panic accelerated trading activity by Friday, pushing prices to $93 and then surging past $109 when markets reopened. Uncertainty about reopening the strait, combined with rising insurance costs and hesitant shipowners, prompted Iraq and Kuwait to halt production in some fields. The U.S. offered naval escorts and insurance coverage up to $20 billion for qualifying vessels.
Read at www.npr.org
Unable to calculate read time
Collection
[
|
...
]