Brent crude jumped 10 per cent to about $80 US a barrel over the counter on Sunday, oil traders said, while analysts predicted that prices could climb as high as $100 US after U.S. and Israeli strikes on Iran plunged the Middle East into a new war.
The global oil benchmark has rallied this year and reached $73 US a barrel on Friday for its highest since July, buoyed by growing concern over the potential attacks that arrived a day later. Futures trading is closed over the weekend.
“While the military attacks are themselves supportive for oil prices, the key factor here is the closing of the Strait of Hormuz,” said Ajay Parmar, director of energy and refining at ICIS.
Even so, it’s still healthier for everyone to have a single giant combustion engine producing electricity in a remote area instead of millions of tiny combustion engines spread out throughout entire cities and residential areas polluting the streets and neighbourhoods.
Easier to deploy other technologies like carbon capture, etc.