US-Iran Clash Pushes Oil Prices Past $112
International oil prices have risen sharply as military tensions between the US and Iran continue for a month. On the 27th (local time), the closing price for May Brent crude futures on the market recorded $112.57 per barrel, a 4.2% rise, while the closing price for May US West Texas Intermediate (WTI) crude futures was $99.64 per barrel, up 5.5% from the previous session. Since February 27, just before the war began, Brent crude prices have increased by 53% and WTI prices by 45%. Although Brent crude prices showed extreme volatility this week depending on the war situation, they rose by only 0.3% week-on-week. This indicates growing instability in the international energy market.
US President Donald Trump announced an extension of the deadline for Iran to reopen the Strait of Hormuz to April 6, but the market reaction was lukewarm. The Wall Street Journal reported that President Trump is considering deploying an additional 10,000 troops, including infantry and armored units. US Secretary of State Marco Rubio also stated that a war with Iran could last for the next 2 to 4 weeks.
Iran's Islamic Revolutionary Guard Corps (IRGC) warned that passage through the strait would be prohibited for all ships traveling to and from ports of US and Israeli allies. In response to the IRGC's warning, three container ships were rerouted, two of which were identified as Hong Kong-flagged. Iran's Fars News Agency reported that a research reactor facility in central Iran was hit by an airstrike. The agency had previously reported that the Khuzestan steel plant in southwestern Iran and the Mobarakeh steel plant in Isfahan in central Iran were attacked. Iran also continued retaliatory attacks targeting facilities in Gulf states.
Experts analyze that strong oil prices could persist for some time. Oil trading advisory firm Ritterbusch & Associates commented on the news of the potential deployment of an additional 10,000 troops, predicting that the crude oil market will become increasingly immune to optimism about a negotiated settlement. Macquarie Group forecasts that oil prices could rise to $200 per barrel if the conflict drags on until the end of June.