Oil Holds Gains as US-Iran Clashes Persist, Houthis Threaten Saudi Red Sea Shipping
Summary
- Oil held its gains as armed clashes between the United States and Iran continued and Houthi rebels threatened to block Saudi Arabia’s maritime shipping.
- West Texas Intermediate (WTI) for September traded near $83 a barrel, while Brent crude settled near $89 a barrel after both benchmarks rose more than 5% over the past two sessions.
- Shipping through the Strait of Hormuz was effectively halted amid continued attacks on tankers, while proposals from mediating countries, including a 10-day pause in attacks, emerged as a possible path to easing the conflict.
Forecast Trend Report by Period
Oil held its gains as clashes between the US and Iran continued and Yemen’s Houthi rebels threatened to block Saudi Arabia’s Red Sea shipping.
Bloomberg reported on July 20 that West Texas Intermediate for September traded near $83 a barrel. WTI has climbed more than 5% over the past two sessions, while Brent settled near $89 a barrel the previous day.
The US has carried out airstrikes against Iran for 10 straight days in response to the deaths of American troops. President Donald Trump warned that Iran would “pay the price” for causing the deaths of US service members. Iran responded by launching missiles and drones toward Kuwait.
The Iran-backed Houthis said the previous day that they would cut off Saudi maritime shipping. Saudi Arabia moves crude to its Red Sea coast through an overland pipeline that bypasses the Strait of Hormuz, then exports it by sea. Saudi Arabia’s Foreign Ministry said it would take all necessary measures under international law to protect its vessels.
Shipping through the Strait of Hormuz is also being disrupted. Iranian attacks on vessels continued over the weekend, and traffic through the strait was reported to have effectively halted the previous day. Dynacom Tankers Management said the very large crude carrier Acheloos and a smaller fuel carrier were attacked in the waterway.
The UK Maritime Trade Operations said on July 20 that it had received multiple reports that a tanker was hit by an unidentified projectile in the Strait of Hormuz, northeast of Lima, Oman.
Iran also said mediating countries were delivering proposals aimed at easing the conflict, which has lasted for more than a week. Reuters reported that one proposal calls for a 10-day halt in attacks by both sides.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.