Escalating conflict in the Middle East pushes oil prices up

Specifically, Brent oil price increased by 1.2% to 78.44 USD/barrel. US WTI oil price increased by 0.9% to 72.02 USD/barrel.

Multiple attacks on the Gaza Strip have taken place and tensions in the Red Sea show no signs of easing. US and British naval forces have shot down 21 drones and missiles fired by Houthi forces in Yemen towards the southern Red Sea.

Separately, in the Middle East, Iran seized an Iraqi crude oil tanker bound for Türkiye in retaliation for the US seizure of the same ship and Iranian oil last year.

Brent crude oil prices are trading at — Brent oil price is trading at 78.44 USD/barrel. Photo: screenshot

The United States and Britain said they would take new measures if Houthi attacks continued, Reuters reported. The United Nations Security Council also passed a resolution demanding an end to Houthi attacks.

The rise in oil prices is also due to the weakening of the US dollar. A weaker US dollar makes oil cheaper for buyers holding other currencies.

However, the US housing market is gradually recovering, which is likely to cause US home prices to rise again and put pressure on inflation.

Rising inflation could push back the timing of when the US Federal Reserve (Fed) will start cutting interest rates. Interest rates that remain high for a long time will put pressure on the economy and limit oil demand, thereby negatively affecting oil prices.

Domestically, yesterday afternoon, domestic gasoline retail prices were adjusted at the joint price management session of the Ministry of Finance - Industry and Trade. Kerosene price increased the most, 374 VND/liter; RON 95-III gasoline price increased the least, 19 VND/liter.

In this operating period, the joint ministries set aside the Price Stabilization Fund for fuel oil at 300 VND/kg, did not set aside the Price Stabilization Fund for gasoline, diesel and kerosene, and did not use the Price Stabilization Fund for all products.

The retail prices of domestic gasoline on January 12 are as follows: E5 RON 92 gasoline is not more than VND 21,041/liter; RON 95-III gasoline is not more than VND 21,935/liter; diesel oil is not more than VND 19,707/liter; kerosene is not more than VND 20,331/liter; mazut oil is not more than VND 15,815/kg.

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