tokyo – Oil jumped on July 8 – after gaining almost 3 per cent the previous day – as the United States launched a wave of strikes against Iran in retaliation for a spate of attacks on shipping in the Strait of Hormuz.
West Texas Intermediate, the US oil benchmark, surged 2.9 per cent to US$72.46 a barrel as at 7.04am Singapore time.
US forces “have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping,” US Central Command said in a social-media post. Explosions were heard on an island close to the strait, Iranian news agency Mehr reported.
In addition to the renewed fighting, the US Treasury revoked a sanctions waiver that had allowed Tehran to sell oil globally, reversing course on a key element of the interim peace deal agreed with the Islamic Republic. Three ships were attacked in the waterway, including a gas carrier and a Saudi oil tanker.
Oil’s rebound, after futures had plunged in the second quarter as regional tensions cooled, threatens a new wave of disruption for global energy markets. The attacks – both against commercial vessels and the US reprisals – stand to dissuade shipowners and regional producers from attempting transits of Hormuz, which links Persian Gulf suppliers to global markets.
Separately, a US industry report showed a modest draw of crude oil in US stockpiles, including at the key hub in Cushing, Oklahoma. Official figures are due later on July 8. BLOOMBERG
