- Oil prices spiked following Iranian attacks on three ships in the Strait of Hormuz, including an LNG carrier and an oil tanker.
- Brent crude climbed $2.49 to $76.65 a barrel, up 3.4%, after fresh strikes from the US and Iran tested a fragile truce.
- The US military carried out a new wave of strikes against Iran and revoked a licence allowing Tehran to sell oil after three tankers were hit by projectiles in the Strait of Hormuz.
- Iran retaliated with strikes targeting US military facilities in Bahrain and Kuwait.
- At least four oil and gas tankers have turned back after trying to transit the Strait of Hormuz, a key shipping passage.
- The US revoked a temporary licence that it had previously issued to allow for the sale of Iranian oil, heightening the risk of a breakdown in the temporary deal between the US and Iran.
- Oil prices have risen by more than 3% after fresh strikes from the US and Iran tested a fragile truce.
- European gas prices rose sharply after the US airstrikes on Iran, with Dutch TTF surging by nearly 10% since the start of trading on Tuesday.
Oil prices have jumped significantly following a series of Iranian attacks on vessels in the Strait of Hormuz, which prompted a robust response from the US military. Brent crude surged to $76.65 a barrel, marking a 3.4% increase as tensions escalated in the region.3
The Iranian strikes targeted three ships, including an LNG carrier and an oil tanker, leading to renewed US military action. The US military conducted strikes against Iranian air defense systems and revoked a temporary license that allowed Iran to sell oil, further straining the fragile ceasefire established for negotiations.
“Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences,” a US official stated, highlighting the seriousness of the situation. The US military's response included hitting over 80 Iranian targets following the attacks on the vessels.
Market analysts warn that the US's decision to reimpose sanctions on Iran could jeopardize the peace agreement reached last month. “The latest re-escalation only adds to concerns about tightness as Europe moves closer to the heating season,” said Warren Patterson, an analyst at ING.
As a result of these developments, oil prices have risen to their highest level in two weeks, with Brent crude climbing as much as 3.5% to $76.75 a barrel. The situation remains fluid, with traders closely monitoring geopolitical developments that could impact market sentiment.7
“At least four oil and gas tankers turned back from the Strait of Hormuz after the attacks, while NATO chief Mark Rutte called the US strikes 'absolutely necessary' during a summit in Ankara. Traders now see a 72% chance of an interest rate rise by November as geopolitical tensions roil markets.”
ING THINK economic and financial analysis | ING THINK
The Guardian
