Latest News

Oil prices jump 3% following US and Iran's increased strikes in the Middle East

The oil prices soared?on?Monday as Iran increased its strikes against?Gulf States following US attacks, threatening energy?shipments through the Strait?of Hormuz.

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

The U.S. and Iran launched new strikes against each other over the weekend. This is the latest in a series of counter-attacks and attacks on shipping through the Strait.

U.S. president Donald Trump announced on Sunday that the Strait of Hormuz was open for commercial?traffic. Iran had earlier declared that it had closed the Strait of Hormuz after a vessel traveling on an unapproved route was struck.

Shiptracking data from Kpler revealed that six vessels crossed the strait Sunday, the lowest number for five weeks.

The increasing attacks have cast doubt on the future a U.S.-Iranian interim agreement signed last week that was intended to reopen strait after 60 more days of negotiation and end war.

In its report published on Friday, the International Energy Agency said that following the agreement, oil supplies worldwide?rose by 4,1 million barrels per days in June but were still 9,4 million bpd lower than pre-war levels.

ANZ analysts wrote in a note that the chances of a relatively 'quick resolution' to the skirmishes over the weekend may have been lowered.

IG analyst Tony Sycamore stated that the'relatively tame' rise in oil prices indicated the market believed the current flare-up was an escalation of a fragile truce, and fell far short of a total collapse of the ceasefire.

In a letter, he wrote: "How accurate this view is yet to be determined."

(source: Reuters)