Oil jumps 3% after US, Iran escalate strikes in Mideast


By Florence Tan

SINGAPORE, July 13 (Reuters) – Oil prices jumped on Monday as Iran expanded strikes on Gulf states following attacks by the ‌United States, threatening energy shipments via the Strait of Hormuz.

Brent crude ‌futures climbed $2.34, or 3.08%, to $78.35 by 2311 GMT, while U.S. West Texas Intermediate crude rose $2.21, ​or 3.09%, to $73.62 a barrel.

Over the weekend, Tehran extended strikes on Qatar and the United Arab Emirates while the U.S. launched further strikes on Iran, the latest in a cycle of attacks and counter-attacks over shipping through the strait.

U.S. ‌President Donald Trump said on ⁠Sunday that the Strait of Hormuz is open to commercial traffic, although Iran declared earlier that it closed the ⁠strait after a vessel traveled on an unapproved route and was struck.

Six vessels transited the strait on Sunday, shiptracking data from Kpler showed, the lowest number in ​five weeks.

The ​escalating attacks cast further doubt on ​the future of an interim U.S.-Iranian ‌agreement signed last month that aimed to reopen the strait and end the war after a further 60 days of negotiations.

Following the agreement, global oil supply rose by 4.1 million barrels per day in June, but remained 9.4 million bpd below pre-war levels, the International Energy Agency said in its ‌monthly report on Friday.

“Hopes of a relatively ​quick resolution to the recent skirmishes may be ​in doubt after tension escalated ​over the weekend,” ANZ analysts said in a note.

IG ‌market analyst Tony Sycamore said the relatively ​tame rise in ​oil prices suggested the market was taking the view that the current flare up represented an escalation within a fragile truce and fell ​well short of a ‌complete collapse of the ceasefire.

“How accurate that view is remains to ​be seen,” he said in a note.

(Reporting by Florence Tan; Editing ​by Edmund Klamann and Sonali Paul)



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