Oil prices rose more than 2% on Tuesday amid growing doubts that President Donald Trump will form a meaningful coalition to escort tankers through the Strait of Hormuz.
brent The international benchmark price rose 3.2% ($3.21) to close at $103.42 per barrel. us oil Prices rose 2.9% ($2.71) to settle at $96.21 per barrel.
President Trump said in a social media post that NATO allies do not want to join the US war against Iran. The president said the United States does not need the aid of allies.
Crude oil prices since the beginning of the year
The United States has asked its allies to send troops to protect tanker traffic through the strait. After Iran’s attack, shipping movement through the vital shipping lane has plummeted, causing the biggest disruption to global oil supplies in history.
“The scale of the oil supply disruption is so large that it will be difficult for the market to find a suitable solution,” said Warren Patterson, head of commodity strategy at ING.
“The administration has touted the idea of insurance guarantees and naval escort, but neither has materialized yet,” Patterson said.
He added that the United States may refrain from such action until it feels that Iran’s ability to launch attacks on ships has been compromised, since escorting commercial ships through the Strait of Hormuz would leave naval vessels vulnerable to attack.
This strait, located between Oman and Iran, serves as an important artery for global oil trade. According to energy consulting firm Kpler, about 13 million barrels per day will pass through the channel in 2025, accounting for about 31% of all offshore oil flows.
