Oil climbs as Hormuz risks rise
HOUSTON: Oil prices rose by more than $3 a barrel on Thursday on news that an Iranian parliament committee is reviewing a bill that would ban US and Israeli vessels from the Strait of Hormuz and fine violators up to a fifth of the value of their cargo. Brent crude futures gained $3.09, or 3.89pc, to $82.54 a barrel by 12:37pm EDT. US West Texas Intermediate futures rose $2.49, or 3.31pc, to…
Oil prices surged by more than $3 per barrel on Thursday, following news that an Iranian parliamentary committee was considering a law to ban US and Israeli vessels from the Strait of Hormuz. The ban could potentially result in fines for violators of up to 20% of the value of their cargo. Brent crude futures climbed $3.09, or 3.89%, reaching $82.54 per barrel while US West Texas Intermediate futures increased $2.49, or 3.31%, to $77.71.
Iranian lawmakers said a parliamentary committee is reviewing a preliminary bill to restrict hostile vessels from the strategic waterway, according to Fars news agency. Dennis Kissler, senior vice president of trading at BOK Financial, noted that crude traders are closely watching the US-Iran agreements, and the longer the delays, the more prices may return to the upside.
Prior to February's Iran conflict, approximately one-fifth of global daily oil and liquefied natural gas supplies passed through the Strait of Hormuz. Meanwhile, Yemen's Houthis reported carrying out missile and drone attacks on Saudi forces in Marib and Hadramout on Thursday, resulting in the death or injury of hundreds of Saudi-aligned fighters, and the destruction of military facilities, weapons depots, and vehicles.
John Kilduff, partner at Again Capital, stated that the market is fluctuating as tensions rise and fall, and these attacks indicate additional activity in the Red Sea corridor, a potential concern for energy security. In July, Gulf countries' crude oil and condensate exports were largely stable, remaining about 40% below pre-war levels, as per shipping data.
Iran has issued a warning to Gulf states that any new US attack on its territory would result in retaliation against vital energy infrastructure across the region. Houthis claimed on Wednesday they had launched missile attacks on Saudi oil tankers off the coast of Yanbu in the Red Sea and in the Gulf of Aden, though Saudi Arabia has yet to confirm these incidents.
Analysts suggest that Houthi attacks have not significantly disrupted oil and gas supplies thus far, but escalation could change the situation.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
