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Oil Trading at Almost Two Months Highs Amid Tension in the Region


Oil prices rose to nearly two-months high levels trading at $60.90 per barrel as around a third of the Gulf of Mexico’s crude output was cut and U.S. crude inventories shrunk more than expected.


Also, the oil prices reaction was due to the increased tension in the middle east as Iran tried to seize a British tanker in Persian Gulf.


Oil has been heading up since last week as tensions surrounding Iran increased tension and oil flows are rising. President Donald Trump vowed Wednesday to impose more sanctions on Iran as they are violating the nuclear accord that he withdrew from last year, while French President Emmanuel Macron is trying to save the deal.


On Wednesday, three Iranian ships unsuccessfully tried to seize a British oil tanker in the Persian Gulf. The oil tanker was crossing into the Strait of Hormuz area when the Iranian ships approached it and demanded that the tanker change course and stop in nearby Iranian territorial waters.


Royal Navy frigate HMS Montrose, which was escorting the tanker, trained its guns on the Iranian ships and ordered them to back off which they did without a shot being fired.

The tension in the region following the recent action from the Iranian side has increased the concerns as the Iranian President, Rouhani, blamed the UK as the “initiator” of this tension in the region and warned from the consequences.


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