Oil prices touch six week high as Strait of Hormuz is ‘completely closed’


Oil prices touch six week high as Strait of Hormuz is 'completely closed'

Crude oil prices jumped to six week high on Thursday, with Brent rising above the $96-a-barrel mark and US benchmark WTI climbing past $88, as the Middle East conflict showed no signs of easing. Brent crude gained $1.93, or 2.05%, to trade at $96 a barrel, while West Texas Intermediate (WTI) advanced $1.41, or 1.62%, to $88.24.The gains came after oil prices had surged more than 3% in the previous session, pushing Brent to its highest level since June 8. Fresh attacks on oil tankers in the Red Sea further fuelled concerns over global energy supplies.Investor focus remained on the escalating conflict after the US military carried out a twelfth straight night of strikes on Iran. The attacks came hours after US President Donald Trump said the United States would destroy an Iranian bridge or power plant every time Iran targeted a ship in the Strait of Hormuz, signalling a further escalation in the conflict.Iran’s Revolutionary Guards said an oil tanker caught fire following an explosion while attempting to pass through what they described as a mined route south of the Strait of Hormuz. According to the Guards, two other tankers abandoned their passage and turned back.The Guards also said the Strait of Hormuz was under their control and “completely closed” while US military operations continued in the region, warning that tankers would not be allowed to enter or leave without coordination with Iran.Supply concerns were further amplified after the Iran-aligned Houthis expanded their campaign in the Red Sea.The group announced a naval blockade of Saudi Arabia and threatened vessels carrying Saudi oil through the Bab el-Mandeb Strait. It said it had targeted two Saudi oil tankers in a military operation. Maritime security reports said one of the vessels identified by the Houthis, the Saudi-flagged tanker Encelia, had been struck in the Red Sea.The Houthis also claimed that around 10 ships had turned back after receiving warnings against heading to Saudi ports. Reuters said it could not immediately verify the account.The developments added to worries over oil shipments through two of the world’s key maritime routes, with a spokesperson for Iran’s Revolutionary Guards also warning shipping companies on X that the southern route through the Strait of Hormuz had been mined.Meanwhile, although crude has climbed above the $90-a-barrel mark, it remains well below the peak of $126 reached earlier during the conflict.



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