Oil Prices Soar After Attacks on Three Ships
Oil prices surged nearly 6% on Tuesday (July 7) after attacks on ships in the Persian Gulf triggered a strong response from the United States. Washington lifted sanctions relief that had previously permitted the sale of Iranian crude oil.
West Texas Intermediate (WTI) briefly reached US$72 per barrel in post-closing trading on Tuesday. The rise occurred after three ships, including a Saudi oil tanker and a Qatari natural gas carrier, were reportedly attacked near the Strait of Hormuz.
The attacks threaten the fragile ceasefire between the United States and Iran. The revocation of Iran's oil sales permits signals that the interim peace deal is under threat. Easing restrictions on Iran's oil sector was previously a key part of the agreement.
The Strait of Hormuz is a major concern because it connects Persian Gulf oil producers to global markets. Although shipping traffic has begun to recover after being nearly shut down by the US-Iran war, shipping activity has not yet returned to pre-conflict levels.
Previously, oil prices had fallen by around 30% in the second quarter after Washington and Tehran agreed to an interim peace deal. However, the latest attack has rekindled concerns about energy supply disruptions from the Middle East. Iran also declared to the UN shipping agency that it has authority over parts of the Strait of Hormuz.
At the close of trading in New York, WTI for August delivery rose 2.8% to US$70.44 per barrel, then continued its rise to briefly reach US$72.51 after settlement. Brent for September delivery rose 3% to close at US$74.16 per barrel. Meanwhile, European natural gas prices also surged by 9.1% as the market worried that the ship attack could disrupt LNG shipments through Hormuz. (arl)
Source: Newsmaker.id
