The relief that was visible in crude oil prices in the international market for some time has suddenly gone up in smoke. The deepening military tension between America and Iran in the Middle East has created a huge turmoil in the crude oil market. US President Donald Trump has also announced the end of the agreement with Iran. Speaking to journalists in Ankara, Trump said that there will be no agreement with Iran now. We have finished everything. Due to deepening military tension, a huge jump of about 6 percent was recorded in the price of crude oil. The situation is that Brent crude has jumped beyond $ 78 per barrel, while WTI crude is also trading above $ 74.47 per barrel with a jump of about 5.8 percent.
Why did America take this strict step?
The reason behind this sudden rise in the crude oil market is a major incident that happened in the Strait of Hormuz. Recently, three commercial oil tankers passing through this sea route were attacked with drones and missiles. Qatar flagged ship ‘Al Reqayyat’ was also included in these. American intelligence agencies directly held Iran responsible for this attack, although Iran did not take responsibility for it.
In response to this, on Tuesday, America took major military action and carried out rapid attacks on more than 80 Iranian targets. In this horrific attack, Iran’s air defense system, coastal radar network and anti-ship cruise missile launch pad were completely destroyed. Not only this, America has also destroyed more than 60 boats of Iran’s Revolutionary Guards (IRGC). After this action, Iran has also threatened a strong counterattack, which has created a war-like situation in the entire Middle East. Trump has also announced the end of the agreement with Iran.
Trump said that there will be no agreement with Iran now. We have finished everything. President Trump further said that Iran lied to me. Therefore, now further talks cannot take place with Tehran. We will denuclearize Tehran. The plan for this will be implemented soon. While replying to America, Iran has said that we are ready for war. America has betrayed in Hormuz. Therefore conversations with him cannot be trusted. In view of the danger, neighboring countries Kuwait and Bahrain have put their air defense systems on high alert.
Crisis deepens due to end of exemption to sell oil
Immediately after the attack, America has also given a big blow to Iran on the economic front. The US Treasury Department has canceled with immediate effect the special license (Sanctions Waiver) given to Iran to sell oil globally. It is noteworthy that an interim agreement was signed between the two countries in June this year. Under this, America had given Iran time till August 21, 2026 (for 60 days) to legally sell its crude oil. Now, due to complete abolition of this exemption, a big crisis has arisen regarding the supply of oil in the market.
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