Crude oil tops $86 as Middle East tensions and mine incident bite
Crude oil futures climbed above $86 a barrel as Middle East tensions escalated, with US forces striking Iranian rocket launchers and threats to Kharg Island. Refinery strikes and SPR near-minimum operational levels lifted refined-product margins.
Crude oil futures climbed above $86 a barrel as tensions escalated in the Middle East.
US forces struck two Iranian rocket launchers on Larak Island, marking a return to combat between the US and Iran after roughly a month.
President Trump reportedly said, “We’re going to hit them very hard,” after Iran said it attacked two US bases in Jordan in response.
Trump also extended military threats to Kharg Island, Iran’s main oil export terminal.
Strikes on refineries in the Middle East and Russia have further constrained global refining capacity, pushing refined-product margins to new highs.
The US Strategic Petroleum Reserve has been drawn close to minimum operational levels amid increased crude exports.
Meanwhile, a supertanker caught fire after hitting two naval mines in the southern Strait of Hormuz, according to Iranian state media.
Asian importers, including China, Japan and South Korea, have turned to suppliers as far away as Argentina to offset supply losses from the Middle East.