The accusation speaks nothing of the trade war between the US and China, which has pushed oil prices to year lows in recent weeks on fears that the trade war would dent demand growth. Analysts have lowered demand growth forecasts several times in recent months as the trade war appears to have no speedy end in sight.
““I believe that America is after creating insecurity in the region and increasing oil prices to $200. The Americans want to create problems for the economy of oil-consuming countries so that they can justify their behaviour in the region and in the world,” Abolfazl Hassanbeigi, member of the Iranian Parliament’s National Security and Foreign Policy Commission, told Mehr on Monday.
Tensions have increased in the Gulf after Iran seized a British oil tanker traveling through the Strait of Hormuz, reportedly in response to Gibraltar seizing an Iranian super tanker thought to be carrying oil to Syria in violation of European Union sanctions against Syria. The seizures are just the latest in a string of security issues plaguing the world’s most critical chokepoint for oil, after explosions damaged a few oil tankers in the month prior.
Despite these heightened tensions in the Middle East, oil prices have trended downward over the last month, dragged lower by bleak oil demand growth prospects.
WTI was trading up slightly on Monday, at $54.90 (+0.73%), while Brent crude was trading at $58.73 (0.34%).
The United States has called upon the international community to join forces to secure the vital shipping lanes in the Persian Gulf.
By Julianne Geiger
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