Global Markets
Crude Oil Prices: US-Iran Tensions and Russia-Ukraine War Reverberate
724FinanceBora Yalın
US-Iran tensions have pushed crude oil prices up by 1.54%. WTI prices hit a 1-month high, while gasoline reached a 1.5-month high. The US imposed new sanctions on Iranian ships and conducted airstrikes against Iran. However, Trump proposed replacing the 20% Hormuz fee with trade deals in the Gulf. Meanwhile, the Russia-Ukraine war is also impacting oil markets. Russian crude production is at its lowest in 2.5 years, and refining capacity is at its lowest in 21 years. Ukraine has targeted 24 of Russia's 34 largest refineries, crippling its oil infrastructure. As a result, global crude prices are rising due to both US-Iran tensions and the Russia-Ukraine conflict.
This volatility could drive oil markets into a risk-on cycle, prompting hedge funds to take protective positions while increasing liquidity risks.