Oil Prices Jump Nearly 2% as US and Iran Renew Attacks
Newsmaker.id - World oil prices surged nearly 2% in Tuesday's trading after the United States and Iran renewed attacks in the Middle East. Brent futures rose US$1.62, or 1.8%, to around US$90.84 per barrel. Meanwhile, West Texas Intermediate rose US$1.37, or 1.7%, to around US$84.60 per barrel.
Tensions escalated after the United States attacked several locations in southern Iran in response to the killing of a US soldier. Iran then retaliated by attacking American facilities and military sites in Bahrain, Kuwait, and Jordan. This escalation raised concerns that the conflict could escalate and disrupt regional energy production and distribution.
Supply concerns intensified after a tanker was reportedly hit by a projectile in the Strait of Hormuz, one of the world's most important oil shipping routes. At the same time, Yemen's Houthi group threatened to blockade Saudi Arabian ports and disrupt shipping through the Red Sea, increasing risks to two key energy routes simultaneously.
However, oil price gains remain capped by hopes for diplomacy. Iran has reportedly accepted a 10-day ceasefire proposal mediated by a third party as a first step toward a broader agreement. The market is also awaiting the US oil inventory report, with crude and gasoline stocks expected to decline, while distillate inventories are likely to rise. (CP)
