- Brent crude futures for September delivery gained 2% to $95.99 per barrel, and U.S. futures advanced 1.7% to $88.27 per barrel after President Trump threatened strikes on Iranian infrastructure.
- Iran responded by warning it would retaliate against U.S.-linked infrastructure and energy assets across the region.
- An unnamed Iranian military source said: "If the Americans target a bridge or a power plant in Iran, Iran will, in turn, strike infrastructure and bridges in the region, including energy facilities where the United States has interests."
- HSBC noted the rally reflects renewed concerns over the Strait of Hormuz after the breakdown of the U.S.-Iran ceasefire, warning the outlook hinges on diplomacy.
- 'Since 7-8 July, the ceasefire has frayed as Iranian attacks on vessels transiting the strait of Hormuz prompted U.S. retaliatory strikes,' said Kim Fustier, the bank’s senior global oil and gas analyst.
Oil prices have surged following President Trump's threats to bomb Iranian infrastructure if attacks on ships in the Strait of Hormuz continue. Brent crude rose 2% to $95.99 per barrel, while U.S. futures increased 1.7% to $88.27 per barrel.125
Trump stated, 'From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT.' This declaration has heightened fears of escalating conflict in the region, which has already seen disruptions in crude supplies.
In response, Iran warned it would retaliate against U.S.-linked infrastructure if strikes were carried out. An unnamed Iranian military source stated, 'If the Americans target a bridge or a power plant in Iran, Iran will, in turn, strike infrastructure and bridges in the region, including energy facilities where the United States has interests.'
The recent rise in oil prices reflects renewed concerns over the Strait of Hormuz, especially after the breakdown of the U.S.-Iran ceasefire. HSBC noted that the outlook now depends on whether diplomacy can restore predictable shipping flows. Kim Fustier, a senior global oil and gas analyst, remarked, 'Since 7-8 July, the ceasefire has frayed as Iranian attacks on vessels transiting the strait of Hormuz prompted U.S. retaliatory strikes.'
“Brent crude jumped 2% to $95.99 a barrel and U.S. crude futures rose 1.7% to $88.27 after Trump threatened strikes on Iranian infrastructure. Iran responded by warning it would retaliate against U.S.-linked energy assets across the region if the U.S. follows through.”
CNBC
