Oil Prices Soar over $85 as Fighting Flares in Middle East
- On Tuesday, President Donald Trump announced the U.S. was reinstating a naval blockade on Iran in the Strait of Hormuz, prompting oil prices to rise nearly 3% to their highest in four weeks as the two countries escalated military attacks.
- A memorandum of understanding signed June 17 between the U.S. and Iran had temporarily lowered oil prices; Middle East analyst Will Todman said the deliberately vague agreement allowed both sides to interpret it differently, leading to this breakdown.
- Trump proposed charging a 20% toll on all cargo transiting the strait, which analysts calculated would add around $16 per barrel; meanwhile, Iranian cruise missiles struck two UAE tankers, the Mombasa and Al Bahiyah, killing one Indian crew member and wounding eight others.
- Vessel traffic through the Strait of Hormuz collapsed to just 10 tankers by Monday from 14 on Sunday, the lowest level in two months, as KCM Trade chief market analyst Tim Waterer warned the competing objectives of both sides have made the supply picture highly uncertain.
- Saxo Bank head of commodity strategy Ole Hansen noted the market's return to backwardation signals crude availability will remain constrained in the coming weeks, with analysts projecting prices will hold in the $85-$90 range if disruptions persist.
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(New York = Yonhap News) Correspondent Lee Ji-heon = International oil prices rose on the 14th (local time) as the armed standoff between the U.S. and Iran over control of the Strait of Hormuz continued...
Oil prices hit a one-month high as the escalation of the US-Iran conflict heightened fears of new disruptions to global energy supplies.
Shafaq News – Follow-up: Global oil prices continued their upward trend, rising by three dollars per barrel on Tuesday afternoon, following the collapse of the ceasefire between the United States and Iran and threats by the US military to resume its naval blockade of Iranian ports. Brent crude, the global benchmark, reached $87 per barrel before the opening of US markets, its highest level since June 12. Meanwhile, West Texas Intermediate (WTI),…
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