EMEA Oil Update: Oil Hits 1-Month High on Supply Concerns
Crude oil benchmarks hit their highest in more than a month on Tuesday as the US-Iran war escalated with further strikes on vessels and the US re-imposing a naval blockade on Iran in the Strait of Hormuz. Brent crude futures jumped 4.6% to $87.17 per barrel, while Murban crude futures advanced by 6.4% to $83.16/bbl. Both contracts hit their highest since June 12. The market volatility follows a series of US military strikes targeting Iranian military infrastructure, including coastal positions in Bushehr, Bandar Abbas, and Khuzestan province, where projectile impacts were reported in the oil-refining hub of Abadan and the port city of Mahshahr. The immediate catalyst for the upside move was the US military's move to reimpose a blockade on Iranian shipping and enforce a 20% "reimbursement" fee for all other cargo transiting the Strait of Hormuz, analysts noted. "The move threatens to trigger further attacks from Iran and puts at risk the recovery of oil supplies that had begun after the US-Iran peace deal last month," ANZ analysts said. President Trump said that the US will serve as the "guardian" of the waterway, while Central Command continues a sustained campaign of.
Crude oil benchmarks hit their highest in more than a month on Tuesday as the US-Iran war escalated with further strikes on vessels and the US re-imposing a naval blockade on Iran in the Strait of Hormuz.
Brent crude futures jumped 4.6% to $87.17 per barrel, while Murban crude futures advanced by 6.4% to $83.16/bbl.
Both contracts hit their highest since June 12.
The market volatility follows a series of US military strikes targeting Iranian military infrastructure, including coastal positions in Bushehr, Bandar Abbas, and Khuzestan province, where projectile impacts were reported in the oil-refining hub of Abadan and the port city of Mahshahr.
The immediate catalyst for the upside move was the US military's move to reimpose a blockade on Iranian shipping and enforce a 20% "reimbursement" fee for all other cargo transiting the Strait of Hormuz, analysts noted. "The move threatens to trigger further attacks from Iran and puts at risk the recovery of oil supplies that had begun after the US-Iran peace deal last month," ANZ analysts said.
President Trump said that the US will serve as the "guardian" of the waterway, while Central Command continues a sustained campaign of.