For Brent oil, it was the highest price since July 31, The Guardian wrote. During Monday’s trading, prices fell again, but on Tuesday they reached Monday’s high again. During the day, the price of Brent crude oil varied between 71.5 and 71.96 dollars per barrel, while WTI was between 66.6 and 66.8 dollars.
Analysts explain the rise in prices by the threat of war. “The risk of a possible military escalation in the Middle East is rising and traders are trying to hedge against worst-case scenarios,” Phillip Nova analyst Priyanka Sachdev said. According to her, prices are driven up more by the expectation of development than directly by fears that supplies would be interrupted.”
Shore Capital analyst James Hosie adds that oil markets are reacting “rationally when they take into account the possible disruption of supplies in the event of a conflict.”
The third round of negotiations between the two countries is to take place in Geneva on Thursday. According to The Guardian, this shows that American officials still believe in a possible agreement with Iran, even though Ayatollah Khamenei said last week that Iran will not give up uranium enrichment on its territory or ballistic missiles.
According to experts contacted by The New York Times, Iranian officials consider it a greater risk “for their survival to give in to US demands regarding uranium enrichment and ballistic missiles than to go to war.” “Avoiding war is undeniably a high priority, but not at any cost,” said Sasan Karimi from the University of Tehran.
It is not yet clear what a possible strike would look like, there is speculation about targeted strikes on ballistic missile bases, or the killing of Iranian leaders or the destruction of paramilitary barracks. However, the American leadership has not published any details and will not try to convince public opinion, as George W. Bush did before the invasion of Iraq.
The American aircraft carrier USS Abraham Lincoln has been in the Arabian Sea off the coast of Oman for several weeks, the second American aircraft carrier USS Gerald Ford has already arrived from the Caribbean Sea to Crete.
This week, representatives of both countries are to meet in Geneva.
