The price of Brent crude approached $100 per barrel after the US launched strikes on Iranian tankers near Kharg Island, a key hub for Iran’s crude oil exports. This heightened fears of new disruptions in the Strait of Hormuz, Bloomberg reports, writes UNN.
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On September 9, November Brent futures rose 1.5% to $99.39 per barrel. US WTI gained 1.6% to $94.51.
According to the US Central Command, the US military destroyed five Iranian tankers carrying oil. Washington said this was in response to Iran’s attempts to attack a US Navy ship with ballistic missiles.
The market fears a new escalation
Following the US strikes, Iran threatened attacks on vessels near the ports of Kuwait and Bahrain. Additional pressure on the market was created by attacks by Iran-backed Houthi forces on energy facilities in Saudi Arabia, which prompted some of them to suspend operations.
Brent has risen by more than 60% since the beginning of the year and, for the first time since late July, has approached $100. Before the escalation involving Iran, around 20% of global oil and liquefied natural gas flows passed through the Strait of Hormuz.
Bloomberg notes that the situation is also being supported by the recovery of Chinese oil purchases, while global inventories and spare capacity remain limited.