Trump threatens to attack Iran again, so oil prices continue to rise

Following its successful blockade of the Strait of Hormuz and the development of a plan to collect fees for the passage of ships, Iran has decided to start charging the world's largest technology companies for the use of underwater internet cables laid along the bottom of the Strait of Hormuz. Iranian media outlets are threatening to damage these cables if they do not receive the funds.

 

This position of Iran puts the United States at a disadvantage, as damage to the cables, through which about 20% of data traffic passes, threatens not only the global oil market, but also global trade and the operation of the Internet.

 

Analysts expected the US to launch military action in Iran immediately after the meeting of the US and Chinese presidents on May 14-15, that is, this weekend, so oil prices continued to rise last week.

 

July Brent crude futures rose 7.4% to $109/barrel during the week, but this morning in Asian markets they have already reached $111/barrel on expectations of a new wave of escalation.

 

According to Axios, Trump will convene his top national security team at the Situation Room on Tuesday to discuss options for military action against Iran. At the same time, some Republicans oppose a ground operation in Iran. Congresswoman Marjorie Taylor Greene (R-Georgia), a former ally of President Trump who has since clashed with him on several issues, predicted a “political revolution” in the United States if American troops are present in Iran.

 

According to the consulting company "Naftorynok", at the end of last week wholesale prices for diesel fuel in Ukraine increased slightly, although the average price level remained lower than in the previous week. As of the evening of Friday, May 15, the average wholesale price of diesel fuel in Ukraine decreased compared to May 13 by 0.27 UAH/l to 78.03 UAH/l, and compared to May 8, prices decreased on average by 1.05 UAH/l.

 

At the same time, global stock quotes continue to grow. In particular, futures contracts for gas oil (the main raw material for the production of diesel fuel) on the London ICE exchange on May 15 have increased by $33.9/t (+2.9%) to $1,192.25/t since the start of trading, while last week quotes increased by almost 3%.