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Iran Unrest Sparks Oil Price Surge
14 Jan
Summary
- Oil prices surged over 2% on Tuesday due to Iran export disruption fears.
- US President threatened 25% tariffs on countries trading with Iran.
- Unidentified drones struck four Greek-managed oil tankers in the Black Sea.
Global oil prices escalated sharply on Tuesday, with Brent futures climbing 2.5% to $65.47 and U.S. West Texas Intermediate crude settling 2.8% higher at $61.15 a barrel. This surge was primarily driven by concerns over potential disruptions to Iranian crude exports, a key supplier within OPEC. The escalating anti-government demonstrations in Iran, met with a severe government crackdown, have introduced significant geopolitical risk into the market, contributing an estimated $3-$4 per barrel premium.
Adding to the supply uncertainty, U.S. President Donald Trump issued a warning, threatening a 25% tariff on any business conducted with Iran. This stance specifically impacts major trading partners like China, the largest buyer of Iranian crude. In separate incidents, four Greek-managed oil tankers were reportedly struck by unidentified drones in the Black Sea while en route to load oil, further raising concerns about the security of global energy routes.
