Oil prices climbed further on Tuesday following significant gains on Monday, as escalating instability in the Middle East intensified fears of a global supply disruption. Israel has expanded its operations to target Hezbollah in Lebanon, while Iran has reportedly launched strikes against energy infrastructure in Saudi Arabia and Qatar. Furthermore, the Iranian Revolutionary Guard has threatened to intercept and set fire to oil tankers attempting to navigate the Strait of Hormuz.
The price of a barrel of US crude rose by 2.3 per cent to $72.83, while Brent crude increased by 3 per cent to $79.98. These hikes follow an 8 per cent surge on Monday triggered by anxieties over the Strait of Hormuz. This maritime route facilitates one-fifth of the world’s oil transport and carries substantial volumes of liquefied natural gas (LNG). Iran currently claims to have closed the strait entirely, and reports indicate a drone strike has already targeted a US-linked tanker in the area.
International response and strategic reserves
In response to the volatility, US President Donald Trump stated that he would take all necessary measures regarding the conflict. Secretary of State Marco Rubio confirmed that the United States intends to mitigate the economic impact of rising costs, with formal plans expected on Tuesday. Analysts suggest these measures may include the strategic release of national oil reserves to stabilise global markets.
Rising costs at the pump
European motorists are already witnessing the consequences of these market shifts. According to the consumer organisation UnitedConsumers, recommended retail prices from major fuel providers are rising steadily. The recommended price for a litre of Euro95 petrol has reached €2.319, up from €2.25 in early February, while diesel has climbed to €2.187. While these peak prices primarily affect motorway service stations, costs at independent forecourts are also beginning to trend upwards.
Fuel expert Derk Foolen of UnitedConsumers described the price hikes as a logical consequence of the geopolitical climate. He noted that because crude oil represents a significant portion of the final fuel price, consumers see the impact at the pump almost immediately. Foolen warned that prices are gradually approaching the record levels of 2022, when petrol exceeded €2.50 per litre.
@ anp | NEWS BRAINPORT
