Dr. Fahd bin Jum'ah, former member of the Economic and Energy Committee of the Saudi Shura Council, said that the recent jumps in oil prices reflect the continued state of turmoil and uncertainty in markets, amid ongoing military skirmishes that affect the security of the navigation corridor in the Strait of Hormuz, pointing out that demand flexibility and increased oil supply are putting pressure on prices.

He explained in an interview with 'Al Arabiya Business' that these developments have been ongoing for more than three months, and are even heading towards further escalation, with no clear indicators of nearing a state of peace and security in the strait, which explains the sharp movements in oil prices.

He added that oil markets are witnessing structural changes during and after this crisis, noting that producers have been forced to offer price discounts if they want to increase sales, in light of the great flexibility in demand, which declines whenever prices rise.

He said that China, as the largest driver of global demand, has reduced its oil imports, prompting producers in Gulf states to offer larger discounts to support demand and increase exports.

Regarding the Strait of Hormuz, bin Jum'ah stressed that US statements about the strait remaining open are not enough to reassure shipping and insurance companies, noting that the real measure is the safe passage of tankers and lower insurance costs, which has not yet been achieved.

He mentioned that the continued security risks in the strait are driving many oil tankers to avoid crossing, explaining that ensuring the safety of sea lanes, not political statements, is the decisive factor in returning transport movement to normal.

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