Oil Soars After Iran Claims Hormuz Shutdown
Newsmaker.id - Oil prices surged more than 3% in trading on Monday (July 13th) after Iran expanded its attacks on several Gulf countries and declared the Strait of Hormuz closed again. Brent futures rose 3.08% to US$78.35 per barrel, while West Texas Intermediate rose 3.09% to US$73.62 per barrel.
The escalation occurred after the United States launched additional attacks on Iran, while Tehran retaliated by attacking targets in Qatar and the United Arab Emirates. The tensions have heightened market concerns about the security of oil and gas shipments through one of the world's most important energy routes.
Iran has declared that shipping through the Strait of Hormuz cannot resume until stability is restored. However, the United States has denied the closure claim and said the southern route near Oman is still available. Ship tracking data shows only six vessels transited the strait on Sunday, the lowest number in five weeks.
The oil surge has also reignited concerns about global inflation and the direction of interest rates. Brent then extended its gains by around 4.1% to US$79.11 per barrel, while WTI reached US$74.37. This surge pressured Asian stock markets and boosted the dollar and US bond yields.
Market Impact :
Oil: Brent and WTI are likely to continue strengthening if shipping traffic in Hormuz remains restricted or if attacks escalate.
Gold: Conflict could support demand for safe-haven assets, but rising oil prices also raise concerns about inflation and high interest rates, potentially limiting gold's gains.
US Dollar: The dollar is likely to strengthen due to demand for safe-haven assets and rising expectations of tighter monetary policy from the Fed.
Stock Market: Shares in airlines, transportation, manufacturing, and high-energy sectors are at risk of pressure due to rising operating costs.
Inflation: Rising oil prices could push up global fuel, logistics, and production costs, potentially leading central banks to maintain high interest rates for longer. (CP)
