11 hrs ago
Oil Prices Rise as US-Iran Strikes Threaten Hormuz Supplies
Oil became more expensive after the United States and Iran exchanged new attacks.
Traders worry that fighting could interrupt ships carrying oil through the Strait of Hormuz.
This waterway used to carry about one-fifth of the world's oil consumption.
Brent crude rose above $96 per barrel, and US WTI crude moved close to $92.
The United States said its strikes followed attempted Iranian attacks on ships and American personnel.
Iran said it responded by attacking US military bases in several nearby countries.
Reports about casualties differed, with Iran claiming many US personnel were killed while US officials reported no American casualties so far.
Because ships are having trouble moving through the area, traders are looking for oil from other sources.
Brent crude rose above $96 per barrel, while WTI traded near $92.
The United States said it struck Iranian targets after alleged attacks on shipping and US personnel.
Iran's Revolutionary Guard claimed retaliatory attacks on US bases in Jordan, Bahrain and Kuwait.
The Strait of Hormuz, which previously carried about one-fifth of global oil consumption, remains effectively closed to commercial shipping.
Attacks on two tankers and constrained shipping have increased supply fears and pushed traders toward alternative crude sources.
- Who
- The United States and Iran, including the US military and Iran's Islamic Revolutionary Guard Corps, are involved.
- What
- New US strikes and Iranian retaliation increased concerns about oil-supply disruptions and drove crude prices higher.
- Where
- The events involve Iran, the Strait of Hormuz, and reported attacks near US bases in Jordan, Bahrain and Kuwait.
- When
- The latest strikes occurred overnight on Wednesday, following a weekend escalation and tanker attacks on Monday.
- Why
- The United States said it acted after attempted Iranian attacks on commercial vessels and US personnel, while Iran said it was responding to the US strikes.
United States Account
Iranian Account
Reason for the US strikes
United States Account
US Central Command said the strikes followed attempted attacks by Iran's Islamic Revolutionary Guard Corps on commercial shipping in the Strait of Hormuz and on US service members.
Iranian Account
Iranian accounts described the US action as an offensive against Iranian targets and said further US military action would restrict shipping through the strait.
Retaliatory attacks and casualties
United States Account
Two US officials said there were no reports of American casualties so far from the reported attacks.
Iranian Account
The Islamic Revolutionary Guard Corps claimed a ballistic-missile attack on a US base in Jordan killed a large number of American personnel, while Iranian state media reported a large drone attack on a US base in Bahrain.
Control of the Strait of Hormuz
United States Account
Donald Trump said US forces had almost total control of the strategically important waterway.
Iranian Account
The Islamic Revolutionary Guard Corps said US strikes would further hamper or halt tanker traffic, while reports said Iran had effectively closed the passage to commercial shipping.
Key facts
- Brent price
- Brent rose above $96 per barrel; another report put it at $95.52, up 0.92%.
- WTI price
- West Texas Intermediate traded near $92 per barrel; one report cited $91.02, up 0.89%.
- Previous-session gain
- Brent gained 4.6% in the previous session, while both benchmarks rose by more than $4.
- Strait of Hormuz
- The waterway previously carried roughly one-fifth of global oil consumption and is effectively closed to commercial shipping by Iran, according to the reports.
- Recent tanker attacks
- Two tankers leaving the Strait of Hormuz were attacked on Monday.
- Jordan missile interception
- Jordan's military said its air defences intercepted 10 of 13 ballistic missiles that entered its airspace.
- Interest-rate expectations
- One report said 67% of traders expected a 25-basis-point US Federal Reserve rate hike, up from 40% the previous week.
Quotes
US Central Command
The US military command responsible for operations in the region
“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,”
businesstoday.in
Warren Patterson and Ewa Manthey
ING commodities strategists quoted by The Wall Street Journal
“The key is whether this ignites further rounds of strikes from both sides, and whether it leaves shippers hesitant to navigate the Strait of Hormuz”
financialexpress.com
Sources
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