Oil prices are experiencing a roller-coaster ride, with investors attempting to react to signals from the ongoing war against Iran, which has already expanded across the entire Middle East.
The price of Brent crude oil, which serves as the international benchmark, fell on Tuesday (11/3) by 17% below $80 per barrel and subsequently recovered to around $90, following a statement by US Energy Secretary Chris Wright that the US Navy had escorted an oil tanker through the Strait of Hormuz. However, he later deleted the statement he had made on social media.
Oil prices declined again early Wednesday (11/3), after a Wall Street Journal report that the International Energy Agency is considering the largest strategic petroleum reserve release in its history to maintain stable global supply.
Brent crude oil below $85 per barrel
Brent crude oil futures contracts were trading below $85 per barrel in early hours. After rising as much as 50% to nearly $120 per barrel before declining, oil prices remain approximately 17% higher than before the US and Israel began joint attacks on Iran on February 28.
Global energy markets are in turmoil amid the near-disruption of traffic through the Strait of Hormuz, through which about one-fifth of the world’s oil supply passes, as well as attacks on energy facilities throughout the Middle East.
