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Due to the rising tension, oil price also went up by 5% (Image via: Oil Price)
US-Iran Tension Escalates, Oil Price Rises 5%
Peace agreement between Iran and US seems to be far from sight. Iran’s Revolutionary Guard on Thursday (19/6) shot down a US drone, referring to the drone as an intruder after entering Strait of Hormuz, Iran’s southern territory.The shooting did not only heat up the tension between Washington and Tehran, but also it affects oil price globally. Oil price rose more than 5%.
The factor was not only limited to the drone incident. There are also certain factors contributed to the increase of oil price such as prediction that The Federal Reserve would cut the interest rate, economic growth in US, and also US crude inventory condition.
Brent crude, global gauge for oil price, noted that the oil price rose up to US$64.22 per barrel, increasing US$2.40. While, West Texas Intermediate noted US$56.68 per barrel, increasing US$2.92. The highest oil price was US$75 in April. The decreasing in oil price was due to trade wars between US and China.
President of the United States, Donald Trump, said that Iran had made a “terrible” mistake by shooting down US drone.
Trump has been going hard on Iran. Regarding the incident of Japanese and Norwegian oil tankers sailing on the Gulf of Oman on 13 June, Trump also put the blame over Iran. Not only Trump, but also US Secretary of State, Mike Pompeo, claimed that the US intelligence had the graphic proves that Iran was the culprit behind the attack, to which Iran denied. The attack against 2 oil tankers had been congesting global oil supply.
Source: https://www.irishexaminer.com/breakingnews/business/--932055.html
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