Hormuz Attack, Oil Rivalries Further Wild
Oil prices surged again on Tuesday (July 14th) after attacks on tankers in the Strait of Hormuz intensified. Brent crude hit US$87 per barrel for the first time in a month, as the temporary ceasefire between the United States and Iran collapsed.
The surge occurred after the United Arab Emirates reported that two of its tankers were attacked while transiting the southern shipping lane of the Strait of Hormuz. The two vessels had been used to transport oil from the UAE in recent weeks, making the incident a direct attack on one of the region's vital oil flows.
The situation was further complicated by the fact that several vessels began turning off their tracking signals or sailing "dark" to avoid the risk of attack. This made it increasingly difficult for the market to monitor the actual flow of oil supplies through the Strait of Hormuz, the world's most important energy route.
The oil surge was also triggered by the United States' reimposition of a blockade on Iranian oil exports. The US is also said to be considering additional fees for ships transiting Hormuz with American military protection. At the same time, Washington launched another airstrike against Iran.
Overall, oil prices have risen nearly 14% this week. Market concerns are growing as oil inventories remain low, while fuel demand remains strong. If Iran retaliates against the US blockade by disrupting exports from other Gulf countries, oil price pressures could persist for longer.
As a market impact, the oil surge has the potential to reignite concerns about global inflation. If energy prices remain high, central banks could keep interest rates tight for longer. This could support the energy sector but put pressure on stocks, gold, crypto, and other interest-rate-sensitive risk assets. (arl)
Source: Newsmaker.id
