Oil prices rise nearly 2% as US resumes naval blockade of Iran - Reuters
Global oil prices rose by about 2%, reaching their highest level in the past month after the U.S. reinstated its naval blockade of Iran.
This was reported by Censor.NET, citing Reuters.
Brent and WTI reached their highest levels in the past month
Brent crude oil futures rose by $1.43, or 1.7%, to $84.73 per barrel, while U.S. West Texas Intermediate (WTI) crude oil rose by $1.20, or 1.5%, to $79.34 per barrel.
Brent closed at its highest level since June 12 for the second consecutive session, while WTI closed at its highest level since June 15. At the same time, the rise in prices kept Brent in overbought territory for the second day in a row—for the first time since March.
The U.S. reinstatement of sanctions against Iran has heightened tensions in the oil market
"The resumption of attacks between the U.S. and Iran this week is accelerating and is likely to continue, given the additional U.S. airstrikes overnight following the reinstatement of the U.S. blockade of the Strait of Hormuz," the agency quotes a statement from analysts at the energy consulting firm Ritterbusch and Associates as saying.
Strikes on Russian oil refineries also contributed to the rise in oil prices
Reports of strikes by the Ukrainian military on two Russian oil refineries in Bashkortostan and the Krasnodar Krai had a separate impact on the market. According to the publication, the attacks on Russia’s energy infrastructure led to a decline in Russian diesel fuel exports, which contributed to a rise in global prices for this type of fuel.
What happened before that?
- Earlier, media outlets reported that the U.S. launched strikes against more than 100 targets in Iran following a missile attack on a ship in the Strait of Hormuz. Among the targets struck were missile and drone launchers, ammunition depots, and communications equipment.
- The day before, Trump stressed that the U.S. would intensify its strikes against Iran until Tehran returns to the negotiating table.
- It was previously reported that a fire broke out at the "Gazprom Neftohim-Salavat" oil refinery in Bashkortostan following a drone attack.
- It was also reported that the Ukrainian Defense Forces attacked the Afipsky Oil Refinery in the Krasnodar Krai of the Russian Federation.
