Oil reaches $90: Trump demands Iran pay for war damages
WHAT HAPPENED
Brent, the global benchmark, reached $89.94 per barrel: it rose 2.53% in one day and nearly 14% in one week. WTI advanced 2.7%, to $84.36, due to tensions between the U.S. and Iran.
WHY IT MATTERS
The U.S. and Iran are demanding money and conditions to reopen the Strait of Hormuz, through which one-fifth of the world's oil flowed. If the passage remains restricted, there is less supply: crude oil, fuel, transportation, and pressure on the stock markets rise.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, expensive oil can reduce profits for airlines, transportation, and other companies that use a lot of fuel. At home, gasoline prices usually reflect the international rise with a delay of days or weeks.
💬 TELL IT LIKE THIS
“When a route through which a lot of oil passes is closed, there is less supply, the barrel price rises, and then gasoline prices may rise.”