The main factor that led to the increase in the price of oil to the highest price in the last 5 months

Especially since Tehran supports militant groups fighting Israel in Gaza and along its border with Lebanon.

“This renewed tension comes at a time when oil fundamentals continue to strengthen due to the spread of further voluntary OPEC+ supply cuts,” Ewa Manthey and Warren Patterson, strategists at ING, said in a note quoted by AFP.

Since the start of the Israel-Hamas war in October, clashes between Israel and Iran-backed Hezbollah militants in Lebanon have increased. Hamas, which rules Gaza and launched the October 7 attack on Israel that precipitated the war, is also a client of Iran. Yemen’s Houthi militants, who have disrupted shipping in the Red Sea, are also backed by Iran.

According to ING experts, the reduction of supply on the oil market was already evident, the nearest WTI and Brent futures contracts are traded at a growing premium compared to contracts for later delivery, a condition known as backwardation.

The Organization of the Petroleum Exporting Countries, or OPEC, is expected to hold an online meeting on Wednesday, April 3, of the Joint Ministerial Monitoring Committee. It is expected to maintain support for current policy, which includes a continuation of production cuts of 2.2 million barrels per day by OPEC and its allies (notably Russia) in the second quarter.