Oil prices rose nearly 3% on Tuesday to their highest level in four weeks as the United States and Iran stepped up attacks around the Strait of Hormuz, adding fresh uncertainty to global energy supplies.
Brent crude futures were last up $1.50, or 1.8%, at $84.80 a barrel by 0330 GMT, while U.S. West Texas Intermediate crude gained $1.70, or 2.2%, to $79.84. Both contracts had climbed by more than $2 earlier in the session before paring gains.
Brent had jumped 9.6% in the previous session, its biggest daily gain since May 2020, and prices are now at their highest since Washington and Tehran signed a memorandum of understanding to end the war on 17 June.
The U.S. military carried out a third consecutive night of strikes against Iran on Monday, while U.S. President Donald Trump reinstated a blockade of Iranian shipping and proposed charging a 20 per cent fee to protect traffic through the Strait of Hormuz.
"The latest escalation, including the U.S. reinstatement of the blockade and Iranian responses, has clearly injected fresh risk into the market," KCM Trade chief market analyst Tim Waterer said.
Two United Arab Emirates tankers were hit by Iranian cruise missiles in the southern lane of the Strait of Hormuz in Omani territorial waters on Monday, the UAE Ministry of Defence said. One Indian crew member was killed and eight others were wounded.
Analysts said the direction of prices would depend on whether crude and fuel tankers continue to move through Hormuz. Shipping data on Monday showed tanker transits through the strait had fallen to their lowest level in two months.
However, Iran's oil exports are continuing as usual despite the cancellation last week of a 60-day waiver of U.S. oil sanctions, oil minister Mohsen Paknejad said on his official Telegram account.
Elsewhere, Yemen's Houthi movement fired missiles at Saudi Arabia after accusing the kingdom of bombing an airport under its control on Monday.
"If the Houthis extend their attacks to Saudi's crude products in the Red Sea, it could put (further) uncertainties on crude flows from the region," Simon Wong, a portfolio manager at Gabelli Funds, said in a note.
Meanwhile, China's June crude imports slumped 41.3% to their lowest in almost a decade as refinery run rates hit a 10-year low due to weak domestic demand and export curbs on refined oil products to safeguard energy security amid the Iran war.
Kyiv has recently received a small number of U.S.-made Patriot interceptors capable of downing Russian ballistic miss...
Oil prices fell after the U.S. expanded economic sanctions on Iran, as Tehran vowed to retaliate and warned it had tools to respond, raising concer...
Country music legend Dolly Parton, whose songs, unmistakable style and warmth made her one of America’s most enduring entertainers, has died ...
Ukraine’s President Volodymyr Zelenskyy said on Monday that Kyiv wants peace but will not surrender to Russia, as foreign leaders joined Independence Day events marking 35 years since Ukraine’s independence.
Oil prices fell after the U.S. expanded economic sanctions on Iran, as Tehran vowed to retaliate and warned it had tools to respond, raising concerns over potential disruption to regional oil supplies.
Only four commodity vessels crossed the Strait of Hormuz on Sunday, following 13 transits a day earlier, as disruptions continue to restrict traffic through the key energy chokepoint.
A newly created pro-government political party has secured a commanding victory in Kazakhstan's snap parliamentary election, according to exit polls, strengthening President Kassym-Jomart Tokayev's influence at a pivotal moment in the country's political transition.
Kyiv has recently received a small number of U.S.-made Patriot interceptors capable of downing Russian ballistic missiles, Ukrainian President Volodymyr Zelenskyy has said. It comes as Britain and France pledged stronger military support for Ukraine.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
Kazakhstan has received a fresh vote of confidence in its economy after S&P Global Ratings upgraded the country’s credit rating, citing stronger public finances, solid reserves and steady economic growth.
AnewZ Business Europe, a new weekday programme, takes viewers inside companies driving growth and innovation across the continent, with Brickken CEO Edwin Mata joining the programme for its first episode with host Chief Global Editor Guy Shone. The show airs every Friday.
Once associated mainly with Muslim-majority countries, Islamic finance has become a global industry. Its assets reached around $5.98 trillion in 2024, according to ICD-LSEG, as more countries explore Shariah-compliant finance.
Fuel restrictions have returned to parts of Moscow and the surrounding region, adding another strain to Russia’s economy as refinery outages and rising imports weigh on the rouble.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment