Oil prices are going up due to Middle East conflicts

[Coyster]

The war has cooled down, but the Strait of Hormuz remains completely blockaded by Iran and the United States from both sides. Up to now, despite all efforts, no oil tanker has been able to successfully pass through this route. Therefore, do not be surprised that world crude oil prices show no signs of cooling down, and domestic gasoline prices have not decreased yet.

It is now more of an economic war, with both sides setting up their own blockade in the Strait of Hormuz, which is a very critical maritime passage when it comes to the movement of oil globally. As a result the price of Brent crude is around $100 per barrel, much higher than what it was before the war started. Though many predicted it to be much higher than it is now once the war started, so i guess we can call that good news.

That said, the thing about this war is that it is hard to predict what is going to happen next. Iran no longer want to sit at the discussion table, but the U.S. wants to "force" them into it. I guess sooner or later they would have to budge, but for now the world continues to suffer economically.

[dezoel]

The domestic oil/gas marketers has taken a full blown advantage of the war and are ripping excess in price from the citizens. On reading your comment I just realized this price hiking situation isn't just capped to my country marketers only but other country's are having similar price hikes even when the war isn't as severe as it was at some point. Few days ago I bought at #1,250 Naira a litre, today on my way to church service I decided to top up my tank the price has increased to #1,390 per litre. That's over a dollar in current exchange with me country's currency and I keep worrying what will the coming month look like especially for those who can't really afford today's price hike.

This is the problem, while the war of course makes it more expensive, there is no doubt about that, but these companies are using it an excuse to make it sold even more.

Like let's say it was 2 dollars, and due to war it became 3 dollars, they sell it for 4 dollars to make more profit so that they can get richer, and claim that it did not move from 2 to 3, it moved from 2 to 4, and pocket the difference. This type of situations are the reasons why we have such high inflation.

[AmaGold70]

The conflict in the middle east has affected many countries of the world , and not only the countries in the middle east. The conflict has caused fuel scarcity, and constraints in the energy sector. In many of the countries that are affected by this US, Isreal , and Iraq conflict, cost of transportation has increased, cost of goods, and services too has also increased. The strait of Hormuz is closed, leading to this shortage of oil, and petroleum products supply. The way I look at this conflict, even though the strait of Hormuz is opened, the damages caused in some of these oil facilities is huge, and massive supply might still be reduced, not until these facilities are in good condition before massive supply of oil, and fuel can commence.

[hyudien]

The conflict in the middle east has affected many countries of the world , and not only the countries in the middle east. The conflict has caused fuel scarcity, and constraints in the energy sector. In many of the countries that are affected by this US, Isreal , and Iraq conflict, cost of transportation has increased, cost of goods, and services too has also increased. The strait of Hormuz is closed, leading to this shortage of oil, and petroleum products supply.

Now as a result of this war, most countries have been affected, and my country is no exception. Although the price of fuel has not yet increased, there are other goods that have now increased in price even 3 times, a small example is plastic, most MSMEs are now complaining about the price increase and some have even closed their businesses.
 

[terrific]

Now as a result of this war, most countries have been affected, and my country is no exception. Although the price of fuel has not yet increased, there are other goods that have now increased in price even 3 times, a small example is plastic, most MSMEs are now complaining about the price increase and some have even closed their businesses.

It's good that your country hasn't increased in oil prices yet. And if the more calming situation comes out from the gulf region.
It will result for the actual no attempts of increasing which is a good one for you and your countrymen.
But if the price of goods has already increased by 3 times, it's possible that there is a chance that soon the price of oil there will increase as well.
I couldn't agree more about the MSMEs, they're very affected on this one. They've got most of the operation expenses and in result, they're part of the increase of goods and services they sell.

[coupable]

The way I look at this conflict, even though the strait of Hormuz is opened, the damages caused in some of these oil facilities is huge, and massive supply might still be reduced, not until these facilities are in good condition before massive supply of oil, and fuel can commence.

There are always alternatives to support the crisis. The strait of Hormuz is responsible for 20% of the oil circulating in exportations including Iran itself, which is a garantee that the crisis can't last forever. Go check how countries found the solution compensate for the shortage in oil supplies.

For the recovery from the crisis after opening the strait of Hormuz, the world is already ready; The reduction in sanctions on Russian oil exports quickly revived the oil market despite the ongoing crisis. And the UAE withdraw its participation in OPEC organization which will help her increase its share of oil exports in golbal market, which will help reach the global balance fast than expected.

[Stable090]

Now as a result of this war, most countries have been affected, and my country is no exception. Although the price of fuel has not yet increased, there are other goods that have now increased in price even 3 times, a small example is plastic, most MSMEs are now complaining about the price increase and some have even closed their businesses.

In my country immediately the war started, fuel price increased with about 50 percent. My country isn’t in war, but the war in the middle east is really affecting us here, I can’t really wait for the war to end because as fuel price is increasing, other things that involves transportation is also increasing.

Food items are increasing because they going to be transported from the company to the consumers, and some will be transported from the farm to the market. Prices are increasing, because they are spending more money on transportation because of increase in fuel price. In my country, if there is increase in fuel price, prices of food items, and other things will start increasing also. I just hope the war is going to end soon, and things will get back to normal.

[Lida93]

The domestic oil/gas marketers has taken a full blown advantage of the war and are ripping excess in price from the citizens. On reading your comment I just realized this price hiking situation isn't just capped to my country marketers only but other country's are having similar price hikes even when the war isn't as severe as it was at some point. Few days ago I bought at #1,250 Naira a litre, today on my way to church service I decided to top up my tank the price has increased to #1,390 per litre. That's over a dollar in current exchange with me country's currency and I keep worrying what will the coming month look like especially for those who can't really afford today's price hike.

The war has cooled down, but the Strait of Hormuz remains completely blockaded by Iran and the United States from both sides. Up to now, despite all efforts, no oil tanker has been able to successfully pass through this route. Therefore, do not be surprised that world crude oil prices show no signs of cooling down, and domestic gasoline prices have not decreased yet.

Oil prices will only fall when supply is restored.

This is really serious and we have to begin preparing for the worst days ahead. I don't see a good reason why Trump should reason it that blocking the other end of the route would make things go his way against Iran's. So now it's about who's in control of the Strait of Hormuz and every ship that must pass must now have to be an ally of both Iran and America in other to have safe passage, but how's this possible. Crazy!!!

[The Sceptical Chymist]

Unfortunately there are no possible ways that it will be open, unless something we do not know is going on.

When we're talking global politics and a potential world war, I'd have to estimate that not only is the public operating with incomplete information but probably at an abysmally incomplete level of 5% (or less).  Heads of state aren't making their decisions at press conferences or in any building with more windows than floors.  Whatever the public reads in the press or sees on TV/internet/whatever is what said heads of state have allowed to leak.

And boy is this a fucking sad situation all around.  OP was right even though it wasn't a hard prediction to make--gas in the US hasn't ever been this high that I can remember, and spiking fuel costs are starting to trickle down in the form of inflation.  Speaking of that, the US inflation numbers come out tomorrow.  There was a bump in the data for March (2.4-3.3%).  I'm very curious what the stats for April are going to look like.

[summonerrk]

The situation, it turns out, remains fragile, but it is not yet moving into a hot phase. There may be a number of other proposals, but I think time is no longer playing on Iran's side, but on Trump's side. Although world oil prices do not add to his joy. But Iran faces the threat of a complete collapse of the country due to the blockade of the strait. And in the United States, well, gasoline inflation will rise a little bit. It's unpleasant, especially before the elections, but yes, these things are absolutely incomparable. Election ratings and the hellish situation of the whole country. So we keep an eye on the information. And, of course, these swings have influenced and will continue to influence. Well, of course, coupled with macroeconomics.

[Danica22]

The war has cooled down, but the Strait of Hormuz remains completely blockaded by Iran and the United States from both sides. Up to now, despite all efforts, no oil tanker has been able to successfully pass through this route. Therefore, do not be surprised that world crude oil prices show no signs of cooling down, and domestic gasoline prices have not decreased yet.

That said, the thing about this war is that it is hard to predict what is going to happen next. Iran no longer want to sit at the discussion table, but the U.S. wants to "force" them into it. I guess sooner or later they would have to budge, but for now the world continues to suffer economically.

I disagree with the assertion that Iran no longer wants to sit at the negotiating table. They are a nation under attack and suffering heavy losses from war and sanctions. Therefore, they were even the most eager to sit at the negotiating table and end the war.

However, they had no reason to compromise and accept terms that were coercive and disadvantageous to them. Negotiation and surrender are two completely different things. I think what the US wants is for Iran to surrender, not actual negotiations.

[Superciwong]

The conflict in the middle east has affected many countries of the world , and not only the countries in the middle east. The conflict has caused fuel scarcity, and constraints in the energy sector. In many of the countries that are affected by this US, Isreal , and Iraq conflict, cost of transportation has increased, cost of goods, and services too has also increased. The strait of Hormuz is closed, leading to this shortage of oil, and petroleum products supply. The way I look at this conflict, even though the strait of Hormuz is opened, the damages caused in some of these oil facilities is huge, and massive supply might still be reduced, not until these facilities are in good condition before massive supply of oil, and fuel can commence.

Oil and fuel prices could be under pressure. The Middle East is a crucial region for global oil production and distribution.
If conflict disrupts supplies or routes like the Strait of Hormuz, global oil prices will rise.
This will also impact energy import costs for most countries.

[hyudien]

..

It's good that your country hasn't increased in oil prices yet. And if the more calming situation comes out from the gulf region.
It will result for the actual no attempts of increasing which is a good one for you and your countrymen.
But if the price of goods has already increased by 3 times, it's possible that there is a chance that soon the price of oil there will increase as well.
I couldn't agree more about the MSMEs, they're very affected on this one. They've got most of the operation expenses and in result, they're part of the increase of goods and services they sell.

It doesn't look like things are going to get better anytime soon, we've seen that up until now the war has been going on, even though Iran is not firing missiles as massively as a few months ago but things are still chaotic, now the war has shifted to naval warfare. So it's just a matter of time for my country to increase fuel prices, and as far as I know, fuel stocks in my country are already running low. Hopefully the negotiations between Iran and the US will find a bright spot, I don't want more MSMEs in my country to close their businesses.

[Agbe]

It doesn't look like things are going to get better anytime soon, we've seen that up until now the war has been going on, even though Iran is not firing missiles as massively as a few months ago but things are still chaotic, now the war has shifted to naval warfare. So it's just a matter of time for my country to increase fuel prices, and as far as I know, fuel stocks in my country are already running low. Hopefully the negotiations between Iran and the US will find a bright spot, I don't want more MSMEs in my country to close their businesses.

Things are not going to get better in anytime soon instead prices of things have been skyrocket to the moon. In  my country there are two things that are control prices of things. Which are oil price and dollar exchange rate price. And once any of them rise up, wholesalers would increase prices of goods and services and once wholesale increase their products prices, retail double it and the customers suffer the last prices. In the middle East war. Countries that the war didn't affect, increase their fuel and gas prices to gain profit.

[Cheema02]

The conflict in the middle east has affected many countries of the world , and not only the countries in the middle east. The conflict has caused fuel scarcity, and constraints in the energy sector. In many of the countries that are affected by this US, Isreal , and Iraq conflict, cost of transportation has increased, cost of goods, and services too has also increased. The strait of Hormuz is closed, leading to this shortage of oil, and petroleum products supply. The way I look at this conflict, even though the strait of Hormuz is opened, the damages caused in some of these oil facilities is huge, and massive supply might still be reduced, not until these facilities are in good condition before massive supply of oil, and fuel can commence.

Conflicts in the Middle East region always affects the countries world wide and especially in the field of energy because Middle East is the major suppliers of oil in the world. So when the main trade route like Strait of Hormuz is blocked so due to shortage of oil supply the price of petroleum increases globally so when petrol prices increases its directly affects the transportation and transportation is linked with all daily uses so due to Strait of Hormuz inflation increases worldwide. So that country which completely dependent in imparted oil they faces economic instability. if Strait of Hormuz reopen then inflation not controls immediately its take some time. And also Investors remains active due uncertain behavior of market so this situation shows that how the world is dependent on peace especially peace in Middle East.

[DYOR+BTC]

It doesn't look like things are going to get better anytime soon, we've seen that up until now the war has been going on, even though Iran is not firing missiles as massively as a few months ago but things are still chaotic, now the war has shifted to naval warfare. So it's just a matter of time for my country to increase fuel prices, and as far as I know, fuel stocks in my country are already running low. Hopefully the negotiations between Iran and the US will find a bright spot, I don't want more MSMEs in my country to close their businesses.

Things are not going to get better in anytime soon instead prices of things have been skyrocket to the moon. In  my country there are two things that are control prices of things. Which are oil price and dollar exchange rate price. And once any of them rise up, wholesalers would increase prices of goods and services and once wholesale increase their products prices, retail double it and the customers suffer the last prices. In the middle East war. Countries that the war didn't affect, increase their fuel and gas prices to gain profit.

Yes the price of petroleum products and dollars rate is the general propelling force of but increase and decrease of price of commodities in all countries except for those that do not use dollars for its exchange in international transactions. Be it retailers or wholesalers generally identifies price of petroleum as the reason behind the increase in price because they are aware all movement of commodities cannever be possible without the use of petroleum products,  so that reason alone is a vital one why the price of commodities constantly maintains except for governments that provides such products for its country. 

And with the way things are now i am completely in support of that great opinion that things will continue to get worse day by day until greed and its related activities are eliminated

[DYOR+BTC]

The conflict in the middle east has affected many countries of the world , and not only the countries in the middle east. The conflict has caused fuel scarcity, and constraints in the energy sector. In many of the countries that are affected by this US, Isreal , and Iraq conflict, cost of transportation has increased, cost of goods, and services too has also increased. The strait of Hormuz is closed, leading to this shortage of oil, and petroleum products supply. The way I look at this conflict, even though the strait of Hormuz is opened, the damages caused in some of these oil facilities is huge, and massive supply might still be reduced, not until these facilities are in good condition before massive supply of oil, and fuel can commence.

Yes heavy damage is one disadvantage of conflicts that most people don't understand,  know matter how strong you are during a conflict there most definitely be effect in one way or the other. When this war started, most countries that falls within the area of higher power where reluctant because they believe they won't be affected physically but without knowing something like the closure of strait of Hormuz may occur, which has lead to the uncontrollable high cost of living that has become the major challenge over there which we all know can never be controlled for now and also some fertilities have been destroyed which I know will take them years before it can be fixed.

[puloweh555]

The conflict in the middle east has affected many countries of the world , and not only the countries in the middle east. The conflict has caused fuel scarcity, and constraints in the energy sector. In many of the countries that are affected by this US, Isreal , and Iraq conflict, cost of transportation has increased, cost of goods, and services too has also increased. The strait of Hormuz is closed, leading to this shortage of oil, and petroleum products supply.

Now as a result of this war, most countries have been affected, and my country is no exception. Although the price of fuel has not yet increased, there are other goods that have now increased in price even 3 times, a small example is plastic, most MSMEs are now complaining about the price increase and some have even closed their businesses.
 

Yes, that's right. The impact of this war is already being felt directly by people in every country from fuel prices which ultimately impact MSMEs to other costs such as transportation. In the US it has even impacted the agricultural sector. The Strait of Hormuz is a major global agricultural hub and a route for at least 20% of fertilizer exports. Therefore, the closure of the Strait of Hormuz has also resulted in a fertilizer shortage resulting in decreased production.

This war has not yet reached a resolution as both countries are still debating points that must be agreed upon. While neither country is currently bombing, as they did at the beginning the current war is taking place in the Strait of Hormuz as Iran sees it as a tool to sway negotiations. The Strait of Hormuz is one of the world's most important energy routes, with global markets for oil, fertilizer and gas. The impact of the closure of the Strait of Hormuz continues to spread to various countries.

[Cookdata]

It doesn't look like things are going to get better anytime soon, we've seen that up until now the war has been going on, even though Iran is not firing missiles as massively as a few months ago but things are still chaotic, now the war has shifted to naval warfare. So it's just a matter of time for my country to increase fuel prices, and as far as I know, fuel stocks in my country are already running low. Hopefully the negotiations between Iran and the US will find a bright spot, I don't want more MSMEs in my country to close their businesses.

There was no reason valid reason to start this war but I still like the fact Iran has refused to yield to pressures. Even the US never saw it would have escalated this way and to keep US within it reach, we have not heard of them making advances on any country. The first was Madurov after they took over Venezuela, he was reported to be corrupt, but the actions of US is delusional like Trump is has become earth president, the world must revolve around him, "peak fooling".

It more than decades Iran is reported to start nuclear weapons and so far, there has never been a single evidence to hold on them accountable, using the word imminent only to attack a country looks intimidating than the aim and objective they portray to the world, this was never about what they claim they are fighting for or protecting the middle east. The global oil price hasn't changed, remain the same, even the US aren't getting it cheaper, so where is the benefit.

[Coyster]

I disagree with the assertion that Iran no longer wants to sit at the negotiating table. They are a nation under attack and suffering heavy losses from war and sanctions. Therefore, they were even the most eager to sit at the negotiating table and end the war.

However, they had no reason to compromise and accept terms that were coercive and disadvantageous to them. Negotiation and surrender are two completely different things. I think what the US wants is for Iran to surrender, not actual negotiations.

Fair point, but neither of us know what these terms are, as far as i know, they were not made public. Correct me if i am wrong though and point me to the right source. The U.S. claim that Iran do not want to forfeit their nuclear program and that is why talks have not progressed, but of course we cannot take their word for it, they might not be telling the whole truth.

That said, trying to be as neutral as possible, i think the U.S. holds the cards right now, because it is the Iranians that have suffered militarily and are currently suffering economically, through the U.S.'s blockade. So i don't know how much longer Iran can keep this up before accepting the terms presented to them.