Oil Prices Jump 2%, Hormuz Heats Up Again
Oil prices rose in trading on Tuesday (July 7) after Iran reportedly attacked a Qatari tanker near the Strait of Hormuz. This incident reaffirmed the fragility of the interim peace agreement between the United States and Iran, as both countries seek a permanent resolution to the conflict.
Brent crude, the global oil price benchmark, rose 2.4% to US$73.75 per barrel. Meanwhile, West Texas Intermediate (WTI) strengthened 2.3% to US$70.13 per barrel. This increase indicates the market has again factored a geopolitical risk premium into oil prices.
The attack targeted the Qatari liquefied natural gas tanker Al-Rekayyat as it passed through the Strait of Hormuz. Qatari Foreign Ministry spokesman Dr. Majed al-Ansari called on Iran to immediately halt all actions that could disrupt regional security and the safety of international maritime navigation.
The Strait of Hormuz is a strategic waterway through which approximately 20% of global oil trade typically passes. Therefore, any disruption in this region could immediately trigger concerns about global energy supplies. Previously, UK Maritime Trade Operations also reported that a tanker was hit by an unidentified projectile approximately 8 nautical miles from Limah, Oman.
Tensions escalated after the UKMTO reported another incident on Tuesday, when a tanker transiting Hormuz was allegedly hit by an unidentified projectile and suffered structural damage. If attacks continue, oil prices could potentially continue to rise, while global markets will become increasingly wary of the risks of energy inflation and its impact on interest rate policy.
Source: Newsmaker.id
