Oil prices jumped above $94 a barrel on Tuesday as the conflict between the United States and Iran escalated following fresh American air strikes on Iranian targets, heightening fears of disruption to crude supplies through the Strait of Hormuz.
Brent crude rose $4.06, or 4.49 per cent, to $94.55 a barrel, while West Texas Intermediate gained $4.44, or 5.18 per cent, to $90.20 a barrel. Murban crude also surged by $7.19, or 7.30 per cent, to $105.60 a barrel, according to Oilprice.com.
The rally followed the United States’ fresh strikes on Iran, with Washington saying its forces had targeted the Islamic Revolutionary Guard Corps. “Today (Tuesday) at 12 p.m. ET (1600 GMT), US forces began striking Islamic Revolutionary Guard Corps targets in Iran.
“The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region,” the US Central Command said.
The latest attacks have raised fresh concerns about the security of the Strait of Hormuz, a critical route for global oil supplies. Oil prices had already risen following the exchange of attacks between the two countries over the weekend, while reports of attacks on tankers further fuelled supply concerns.
Reuters reported that two supertankers carrying Saudi oil were struck by unknown projectiles within minutes of each other while travelling outbound through the Strait of Hormuz late on Monday, according to shipping intelligence and tracking firms.
Following the reports, Brent crude futures, which were already up about two per cent, jumped by almost another two per cent.
Iran has also threatened to prevent oil exports from the Gulf if the US continues its attacks. “If the enemy wants us not to export oil from the Persian Gulf, no one will be able to export oil,” Iranian Parliament Speaker Mohammad Baqer Qalibaf was quoted as saying by Iranian media.
The renewed confrontation has heightened fears that the six-month-old conflict could escalate into a wider war and threaten crude supplies from the oil-rich Gulf region.
The conflict had previously shifted towards sanctions, blockades and economic pressure, but the latest exchange of attacks has raised concerns about a return to sustained military confrontation.
US President Donald Trump warned Iran that it would face a stronger response if it retaliated against the latest American strikes.The US strikes came after Iranian missiles were fired at two US air bases in Jordan in response to an earlier American attack on Iran’s Larak Island.
The latest escalation also coincided with plans by Washington to impose additional economic sanctions on Tehran. US Treasury Secretary Scott Bessent said bank sanctions against Iran were likely to be announced this week and next, while warning that Washington would also target other entities doing business with the Islamic Revolutionary Guard Corps.
SOURCE: PUNCH NEWS PAPER
About The Author
