(July 16): Oil held a three-day gain as the US continued its attacks on Iran in a bid to secure shipping through the Strait of Hormuz.
West Texas Intermediate traded near US$80 a barrel, after adding more than 11% in the previous three sessions, while Brent closed above US$85. The US launched more airstrikes on Iran on Wednesday, and said it disabled an unladen oil tanker headed for a port in the Opec+ member.
Crude has soared to its highest in about a month as the escalation in the conflict revives concerns of supply from the energy-rich region, erasing part of a roughly 30% slump in the second quarter. Meanwhile, near-daily Ukrainian strikes on Russian fuel-producing plants and tankers further threaten global supply.
“So not only have we now lost all of the Straits of Hormuz again, but we have also lost the crude oil and the refineries in Russia,” Jeff Currie, a senior adviser at Carlyle Group Inc, said in an interview on Bloomberg TV. “The situation in energy, I would argue, is pretty dire.”
US President Donald Trump pledged to intensify the bombardment of Iran until Tehran stops attacking ships in the Strait of Hormuz and agrees to open the critical energy chokepoint. The Wall Street Journal reported that Trump is leaning toward expanding US military operations in Iran and discussed the seizure of Kharg Island, home to Iran’s main oil export terminal.
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