Washington, March 22: Tensions in West Asia are beginning to impact the global economy. Various countries have implemented fuel reduction measures. Amidst this, a major U.S. airline has expressed concerns that if the situation persists, crude oil prices could soar to $175 per barrel.
United Airlines, one of the largest airlines in the U.S., has raised this alarm. CEO Scott Kirby informed staff in a memo on Friday that conditions are changing rapidly, making it essential to prepare in advance.
He noted that in just the past three weeks, jet fuel prices have more than doubled. If this trend continues, the airline could face an additional $11 billion in annual expenses.
Reports indicate that the price of Brent crude oil, which was around $70 per barrel, has now surged to approximately $119.50.
Additionally, the U.S. Treasury granted a 30-day exemption for purchasing oil from Iran on Friday. This exemption applies to Iranian oil shipments that are already loaded on vessels at sea.
The exemption will cover all ships that had oil loaded by March 20 and must be unloaded by April 19. This information was provided by the U.S. Office of Foreign Assets Control (OFAC) to add approximately 140 million barrels of oil to the global supply.
According to Kepler data, around 180 million barrels of Iranian crude oil are currently on various vessels at sea, spanning from the Middle East to maritime areas near China.
Originally, these sanctions were imposed to weaken Iran’s economy and restrict its oil revenue. Now, some of these restrictions are being temporarily eased.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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