Oil and aluminium prices are going up fast on the global market because of the problems in the Middle East. People are getting worried that there will not be oil and aluminium and that prices will keep going up.
The price of oil is getting higher and higher with oil from the United States going over $101 per barrel and oil from places getting close to $116 per barrel. This is a jump from the $70 per barrel it was before things got bad in the Middle East. Experts think this is happening because of the fighting between the United States, Israel and Iran.
One of the reasons for the high prices is the trouble around the Strait of Hormuz which is a very important place for oil to be shipped from. People are also worried that the problems could spread to important places, like the Red Sea and that there will not be enough oil to go around.
People who follow the market are saying that the fighting and attacks on places that make oil and aluminium are making them think that prices will stay high for a time. They are getting ready for a fight and they think that the high cost of oil and aluminium will make it harder for the world economy to grow, especially in Asia.
The problems in the Middle East are also affecting the price of aluminium. The price of aluminium went up by than 4 per cent on the London Metal Exchange after some big factories in the Gulf were attacked and people got worried that there would not be enough aluminium.
If things calm down in the Middle East the prices might go down. Experts are saying that it will take some time for things to get back, to normal. For now the prices of oil and aluminium are changing a lot because of what’s happening in the Middle East and it is likely that they will keep changing until things are more stable. Oil and aluminium prices will stay high long as the Middle East problems continue.
