Oil prices spiked on Tuesday amid drone strikes at the Novorossiysk terminal on Russia’s Black Sea coast and protests in Iran, a major OPEC member, as concerns grew about potential disruptions to global oil supplies.
Two oil tankers waiting to load crude from some of Kazakhstan’s biggest oilfields were hit by drones at the marine terminal of the Caspian Pipeline Consortium, according to a Reuters report.
This coupled with unrest in Iran, a significant oil-producing country, sent shockwaves through the market, with prices rising sharply in response.
WTI was trading around $58 per barrel while Brent traded at $63 per barrel on Monday.
However, as at 16:00 GMT on Tuesday, WTI traded at $61 per barrel while Brent traded at $65 per barrel. Analysts warned that any disruption to Iran’s oil exports could have far-reaching implications for global energy markets.
“Iran’s situation is being closely watched by market players, given its importance in the global oil landscape,” said a market analyst.
“The protests add another layer of uncertainty to an already volatile market.”
As a result, oil prices jumped, with some analysts predicting further price hikes if the situation in Iran escalates.
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