Oil Rises Again, US Attack on Iran Shakes Market
Oil prices rose again on Thursday (July 8th) after the United States launched attacks on Iran for the second consecutive day. This escalation raised market concerns about the risk of energy supply disruptions from the Middle East, particularly around the Strait of Hormuz.
Brent crude rose 1.5% to above US$79 per barrel after previously surging more than 5% on Wednesday. Meanwhile, West Texas Intermediate, or WTI, was hovering around US$74 per barrel. At 11:24 a.m. Singapore time, Brent for September delivery rose 1.2% to US$78.94 per barrel, while WTI for August delivery rose 1.2% to US$74.40 per barrel.
US Central Command (CENTCOM) stated that the additional attacks were carried out to weaken Iran's ability to threaten freedom of navigation in the Strait of Hormuz. Iran then retaliated with missile and drone attacks on US bases in the region, including reported attacks on Kuwait and Bahrain.
US President Donald Trump previously said that the interim peace deal with Iran was over. He also left open the possibility of reimposing a blockade on Iranian ports and warned that oil prices could rise further if the conflict continues.
The Strait of Hormuz is now a focus of global energy markets. This waterway connects Persian Gulf oil producers to world markets. Ship tracking data shows traffic through Hormuz has begun to decline, with more ship movements occurring on Iran-approved routes, while the US-backed corridor appears quieter.
Analysts warn that if the Strait of Hormuz is re-closed, oil prices could potentially rise further. However, if oil flows continue, the room for price increases could be more limited. The market is also keeping a close eye on US energy stocks, as strategic inventories continue to decline and gasoline reserves are at their lowest seasonal level since 2012. (asd)*
Source: Newsmaker.id
