Despite the world's aspiration to move towards a more sustainable and reliable source of energy, the world continues to be dependent on non-renewable sources of energy, particularly crude oil and its derivatives, including petrol. In a recent development in the matter, crude oil prices have risen.
Oil Prices Jump
The price of brent crude, one of the standards, is now over USD 80 per barrel. The price of Brent crude has softened a little in today's day, yet the price continues to be USD 80.
At the time of writing, the price of Brent crude had reached the price of USD 81.74 per barrel.
In addition, the West Texas Index (WTI) also saw its prices hover around the USD 80 mark, just marginally behind the number. The WTI price reached the USD 79.62 mark.
Tension in Middle East
This development is being attributed to myriad crises that are either in full force or are brewing around the globe. One of the biggest factors that could play a pivotal role in the matter is the rising tension in the Middle East.
After the assassination of former Hamas leader Ismail Haniyeh, tensions between the major players, i.e. Iran and Israel, have hit a fever pitch. The Ayatollah-led Iranian regime has also vowed to take revenge for the killing.
This has deep implications not only because Iran itself is an important oil producer but also because it has access to pertinent corridors, including the Strait of Hormuz, that see a significant amount of trade that transpires | File
This has deep implications not only because Iran itself is an important oil producer but also because it has access to pertinent corridors, including the Strait of Hormuz, that see a significant amount of trade that transpires through them.
Sir Keir Starmer reached out to the Iranian regime. | Twitter
An escalation or any armed confrontation could not only affect the availability of oil but also potentially stall trade monumentally, adding to the vicious feedback loop. Many, including British PM Sir Keir Starmer, have reached out to the Iranian regime, asking for restraint in the matter.
The Ukrainian Factor
Another important factor that could play a role is the recent incursion of Ukrainian forces inside Russian territory, particularly the Kursk region. The forces under the leadership of Volodymyr Zelenskyy have claimed to have occupied over 1000 sq km of area.
This aggression from the invaded country has relayed some concerns among stakeholders, who think it could once again affect energy prices. This is because Russia is one of the biggest producers of non-renewables, including crude and natural gas.
