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Oil prices rise after renewed US-Iran strikes in Middle East

Oil prices rise after renewed US-Iran strikes in Middle East
Oil prices rise after renewed US-Iran strikes in Middle East

Oil prices increased on Monday following days of titt-for-tat attacks?by the United States and Iran?in the Middle East, which highlighted the fragility of the interim peace agreement and once again slowed down energy shipping through the Strait of Hormuz.

Brent crude futures rose 52 cents or 0.672% to $72.51 per barrel at 2313 GMT, while U.S. West Texas Intermediate was up 71 cents or 1.03%, trading at $69.94.

Brent crude dropped 10.6% last weekend, its third consecutive weekly decline. Crude shipments through the Strait increased last week to the highest level since February, when the U.S. - Israel conflict with Iran began.

Traffic has slowed since Thursday after renewed attacks against ships in the Strait, including an oil tanker linked to Qatar, which triggered strikes by the U.S.

ANZ analysts wrote in a report that "the?market will likely re-evaluate their assumption of a rapid recovery of oil supplies from the Persian Gulf."

Axios reported that Iran and the United States had agreed to stop recent hostilities and resume talks about their dispute over Strait of Hormuz in Qatar, in order to cap oil price gains. ? Could not confirm immediately the report.

Aramco, the Saudi oil giant, resumed crude oil loadings at its Ras Tanura Terminal, west of Strait of Hormuz on Friday after they had been halted for almost four months. They joined a rush to move cargoes following a flurry of activity by Middle East producers who increased oil and gas production and exports in anticipation of an interim agreement.

ANZ analysts stated that despite the U.S. Iran deal being a 'turning point' for oil markets, physical flow is constrained by damaged infrastructure, tanker backlogs and production shutdowns.

It could be another year before the supply reaches pre-conflict level.

Even after the crash of a company helicopter on Sunday on the east coast of the Gulf in Ras Tanura, 14 people were killed, loadings at Aramco's Ras Tanura Terminal continued. State news agency reported that the cause of the accident was unknown.

(source: Reuters)