West Texas Intermediate jumped above $79 per barrel, while the global benchmark Brent approached $85, heading for an impressive weekly rise of nearly 12%.
Following a recent attack on an oil tanker near the major export terminal of the OPEC member, the US conducted further strikes on Iran on Thursday. Reuters reported that Tehran has directed Yemen’s Houthi rebel group to block the Bab el-Mandeb strait to the Red Sea, crucial for Saudi oil shipments, if Iranian electrical infrastructure is targeted.
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With renewed concerns about traffic in the Strait of Hormuz, a critical chokepoint for nearly a fifth of the world’s oil flow, crude prices have surged to their highest levels in about a month, recovering from a nearly 30% loss in the second quarter. The ongoing conflict has also impacted fuel supplies like petrol and diesel, pushing US refiners’ profit margins to unprecedented highs.
The US and European fuel markets are currently facing exceptional tightness, raising the risk of higher prices for already burdened consumers. This situation coincides with a drop in Russian exports following an attack on the country’s facilities by Ukraine, which resulted in Moscow banning diesel exports.
According to Bloomberg, some tankers appear to be conducting ship-to-ship transfers off the coast of Oman, even as visual transit through the Strait of Hormuz has decreased. Earlier this week, Iran targeted vessels transporting oil to the United Arab Emirates, heightening concerns about the continuity of shipments through this essential waterway.
(Edited by : Juviraj Anchil)
