Oil prices rose after the United States attacked three Iranian oil tankers over the weekend and Tehran announced a new restricted zone outside the Strait of Hormuz, escalating maritime tensions in the region. Brent crude climbed 0.3 percent to $96.54 a barrel as of 08:10 Singapore time, extending its year-to-date advance to 60 percent. West Texas Intermediate rose 0.5 percent to $91.91 a barrel. European natural gas prices gained 4.2 percent.
Tankers struck in Gulf waters
The US strikes targeted three vessels in retaliation for a ballistic missile strike on a US Navy warship. US Central Command reported that the Suezmax tanker Kylo sank in the Gulf of Oman, while the Suezmax Stark I and the VLCC Downy were disabled near Kharg Island. Iran reportedly targeted three tankers as well.
Energy markets reacted quickly. The latest clashes follow six months of Middle East conflict that has claimed the lives of 18 US military personnel.
Naval presence remains firm
US Energy Secretary Chris Wright stated there will be no reduction in US Navy presence, which aims to limit Iranian oil exports and secure commercial transit through the Strait of Hormuz.
Shipping risks continue to grow. Haris Khurshid, Chief Investment Officer at Karobaar Capital LP, told Bloomberg: “If shipping conditions worsen or more sustained disruptions to actual oil supply emerge, reaching $100 will be much easier.”
Also Read
Source: US Central Command
