Oil prices rise due to escalating conflict/ Impacts on the global economy with high production costs
Oil prices rose on Monday morning as investors assessed the economic impact of US and Israeli attacks on Iran, which prompted swift retaliation from Tehran targeting assets in several Middle Eastern countries.
In early trade, the price of a barrel of U.S. crude initially rose about 8%. It later traded 5.9% higher at $71 a barrel. Brent crude rose 6.2% to $77.38 a barrel.
Traders fear that oil supplies from Iran and other countries in the Middle East could slow or stop. Attacks across the region, including on two tankers traveling through the Strait of Hormuz, have limited the ability of countries to export oil to the rest of the world.
"Approximately one-fifth of global oil and liquefied natural gas flows pass through the Strait of Hormuz. This is not an unknown channel. It is the aorta of the global energy system," said one market analyst.
A prolonged war could result in higher prices for other fuels and gasoline, and negatively impact the global economy, adding to overall production costs.
Likewise, prolonged disruptions to oil flows through the Middle East would have "major consequences for oil and liquefied natural gas. Iran exports roughly 1.6 million barrels of oil per day, mostly to China. Beijing may have to look elsewhere for supplies if Iran's exports are cut, another factor that could push up energy prices.
However, China has sufficient oil reserves of up to 1.5 billion barrels and could offset a decline in Iranian oil by increasing imports from Russia.
In other early trading on Monday, the price of gold - usually seen as a safe haven in times of uncertainty - rose 2.4% to around $5,371 an ounce.
British base in Cyprus hit by Iranian drone/ Limited damage, no casualties
A drone strike hit the British Royal Air Force base in Akrotiri in Cyprus overnight, causing limited damage and no casualties, the Cypriot president and......
The war between Iran and Israel "shocks" the markets / Oil prices rise and Bitcoin falls
Recent tensions in the Middle East have caused oil prices to rise sharply, pushing Brent to its highest levels in months, while investors are fleeing riskier......
Rama reacts to US-Israeli attacks on Iran: We will call the Revolutionary Guard a terrorist organization
Prime Minister Edi Rama has reacted to the situation created by the war between Israel and Iran, which also involves the US. The Prime Minister declared that......
Ticket price increases by 300 lek after the Librazhd - Pogradec axis is blocked/ Public Transport Association: Don't abuse it, the problem will be solved quickly
The blockade of the Librazhd-Pogradec axis has led to an increase in public transport prices for trips from the southeast to Tirana. Drivers say they are......
Properties, 33 thousand maps towards digitalization/ Fiscal Cadastre in the third phase, fair taxation system
Around 33,000 physical maps will be georeferenced and integrated into the digital system, creating a unified and reliable database of property data. The......
Rama: Corridor VIII, a colossal investment "The landslide, not from the works". ARRSH: Work on the river diversion is completed
As the collapse of the road on the Librazhd - Prrenjas axis has blocked the movement of vehicles towards the southeast from the main axis, Prime Minister Edi......
28.3 million lek/month more contributions from insurance - Over 12 thousand workplaces were checked in January
Thanks to intensified controls during January, social security contributions have increased significantly, bringing more support to pension, unemployment and......
Albania at the epicenter of regional tourism/ Is it at risk of facing the crisis of overdevelopment?
Albania is experiencing a remarkable increase in tourism, becoming one of the fastest-growing destinations in the Mediterranean. According to an analysis......
