By Udeme Akpan
The latest disagreement between President Donald Trump and Iran over the reopening of the Strait of Hormuz has pushed up oil prices by 5 per cent to $87 per barrel from $83 per barrel in the global market.
This was even as Bank of America (BofA) warned that oil prices could continue to rise as the world heads into winter if the two parties fail to reach an agreement on reopening the Strait of Hormuz.
Francisco Blanch, Bank of America’s head of commodities and derivatives research, told CNBC on Monday: “But if we don’t, we’re going to keep creeping higher into the winter.”
According to him, only a few ships can pass through the Strait of Hormuz, unlike in the past when about 140 ships used to pass through it.
