Oil prices jump again after US-Iran strikes
Photo: Prices have risen by more than 3% (Getty Images)
Oil prices surged on Monday, July 13, after the US and Iran exchanged strikes again overnight, threatening energy supplies through the Strait of Hormuz, according to CNN and Reuters.
Brent crude futures rose 3.92% to $78.99 per barrel, while US West Texas Intermediate crude rose 3.44% to $73.87 per barrel.
Background
Over the weekend, Iran struck a vessel that was allegedly traveling on an unauthorized route. This prompted a retaliatory response from the US, which struck Iranian territory, and Iran, in turn, struck Qatar and the UAE. Moreover, the mutual attacks resumed last night.
On Sunday, US President Donald Trump stated that the Strait of Hormuz is open to commercial shipping, although Iran had previously announced the closure of the strait after a vessel traveling on an unauthorized route came under fire.
According to the Kpler vessel tracking system, six ships passed through the strait on Sunday, the lowest number in five weeks.
Moreover, the escalation of attacks has cast even more doubt on the future of the temporary agreement between the US and Iran, which was signed last month to restore the strait’s operations and halt hostilities for another 60 days while negotiations continue.
According to a report by the International Energy Agency, following the agreement, global oil supplies rose by 4.1 million barrels per day in June but remained 9.4 million barrels per day below pre-war levels.
