New Attacks Boost Oil Prices!
Oil prices rose on Monday (June 29th) after retaliatory attacks between the United States and Iran again highlighted the fragility of the interim peace deal between the two countries. These tensions also further slowed energy shipments through the Strait of Hormuz, one of the most important routes for global oil trade.
Brent crude rose 58 cents, or 0.8%, to US$72.57 per barrel, while West Texas Intermediate (WTI) gained 88 cents, or 1.3%, to US$70.11 per barrel. This increase follows a sharp decline in oil prices last week, with Brent weakening 10.6% as the market initially believed oil shipments through the Strait of Hormuz were recovering.
However, sentiment changed again after attacks on ships around the Strait of Hormuz since Thursday, including oil tankers linked to Qatar. The incidents triggered retaliatory action from the US and Iran and marked the worst escalation since the two sides signed the interim peace deal. Analysts believe the market may need to reassess its assumption that oil supplies from the Persian Gulf will recover quickly.
Despite this, oil price increases remained subdued after the US and Iran reportedly agreed to cease recent hostilities in the Gulf region and resume talks on the Strait of Hormuz dispute. Meanwhile, physical disruptions such as tanker queues, infrastructure damage, and production outages continue to cloud supply. ANZ analysts estimate that supply recovery to pre-conflict levels could take the remainder of the year.(Asd)*
Source: Newmaker.id
