Oil Jumps as US Strikes on Iran Push WTI Above $72
Summary
- Reports of US strikes on Iran sent global oil prices sharply higher, while rising military tensions in the Strait of Hormuz fueled concerns over energy supply disruptions.
- West Texas Intermediate (WTI) rose above $72 a barrel, while Brent traded near $74, after oil had already gained about 3% the previous day.
- The US OFAC move to revoke Iran sanctions waivers, along with attacks on commercial vessels in the Strait of Hormuz, raised the possibility of disruptions to shipping traffic and crude exports from Middle Eastern producers.
Forecast Trend Report by Period
Oil prices surged after news of US airstrikes on Iran. Military tensions around the Strait of Hormuz escalated again, heightening concerns over disruptions to global energy supplies.
Bloomberg reported on July 7 that West Texas Intermediate climbed above $72 a barrel, while Brent traded near $74. Oil had already risen about 3% the previous day.
US Central Command said it had launched “a series of powerful airstrikes” against Iran in response to attacks on commercial vessels passing through the Strait of Hormuz. Iran’s Mehr News Agency reported explosions on an island near the waterway.
Prices also drew support after the US Treasury Department’s Office of Foreign Assets Control revoked a sanctions waiver that had allowed Iran to sell oil globally. The move rolled back a key measure in a temporary peace agreement reached earlier with Tehran.
Three commercial vessels, including a gas carrier and a Saudi tanker, were recently attacked in the Strait of Hormuz. Markets are watching whether the latest clash will disrupt shipping traffic and crude exports from Middle Eastern oil producers.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.