Tensions between the US and Iran escalate, causing a surge in international oil prices... Anxiety in the Strait of Hormuz intensifies

Recently, oil prices in New York have surged sharply over six trading days, and concerns about oil prices in the international market are increasing. This is due to the spread of risk aversion caused by the possibility of U.S. military action against Iran.

Because of security issues around Iran, major countries have advised their citizens to evacuate Iran, and some have approved the withdrawal of embassy staff. Tensions are becoming more apparent. Meanwhile, U.S. President Donald Trump expressed dissatisfaction with the Iran nuclear negotiations, further increasing uncertainty. Trump has called for Iran to abandon its nuclear program but has not made a final decision yet.

This tense situation has prompted China, the UK, Canada, India, and other major countries to strengthen alertness among their diplomats and citizens in the Middle East and to recommend evacuation. DBS Bank analyst Subro Sakar pointed out that although U.S.-Iran talks show the possibility of a peaceful resolution, the risk of military conflict still exists. This is due to the instability of the Strait of Hormuz, through which about 20% of global oil supplies pass, causing oil prices to already reflect risk premiums.

The future direction of oil prices amid political tensions in the Middle East and global economic uncertainties has become a key focus. Whether tensions between Iran and the U.S. can be eased or whether they will trigger further military confrontation, the international oil market will respond sensitively.