Brent opened on Monday 9 March at 108.5 dollars a barrel, (at the time of publication of the article, it measured 105.17 dollars a barrel, the price is constantly updated), 17% more than the previous week. West Texas Intermediate scores 104.9 dollars, +15%. These are the highest levels since 2022, when Russia’s invasion of Ukraine sent global energy markets into a tailspin. This time the detonator is the war in Iran.
What caused prices to explode
Over the weekend, the Israeli Defense Forces struck around thirty oil depots and facilities in Tehran, with an offensive that according to Axios would have exceeded Washington’s expectations.
The attacks have worsened the blockade already in place on the Strait of Hormuz, the corridor through which about a fifth of the world’s oil passes. Traffic has been paralyzed for a week: some cargoes destined for Europe have reversed course, insurance premiums for “war risk” on oil tankers have skyrocketed to record levels.
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The G7 response
During the night, crude oil had reached 137 dollars, before falling back following the announcement of an emergency meeting of the G7, called for 2.30pm Italian time. According to the Financial Times, the most industrialized countries are considering the coordinated release of 300-400 million barrels from strategic reserves, under the aegis of the International Energy Agency. It would be only the sixth time in the IEA’s history.
