- Oil costs soar greater as tensions within the Gulf proceed to escalate
- Natural Gas costs will mirror oil costs on account of their reliance on the Strait of Hormuz
Oil costs jumped greater on Friday after it was reported that Iran had seized a British vessel within the Strait of Hormuz, as tensions continued to escalate within the Gulf. Brent Crude jumped 2.5% on Friday afternoon to $63.21/bbl. heading greater into the weekend earlier than opening greater nonetheless on Monday morning at $63.47/bbl.
PRICE CHART: BRENT CRUDE 5-MINUTE TIME FRAME (July 19 – July 22)
International economies could also be pushed into recession if oil costs surge, which might in flip intensify the shift away from fossil fuels. Nations that are closely reliant on the area’s crude will see a rise of their present account balances as their imports of oil will turn out to be costlier, India shall be closely impacted as a big proportion of its oil imports come from the Gulf. If tensions escalate into armed battle, we might see oil costs surge again to 2014 ranges the place a barrel was priced near…