Crude oil futures gain after US forces attack Iranian island
In a post on X, US Central Command said its forces took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz
Crude oil futures experienced a significant rise on Monday morning following a US military strike on an Iranian island in the Strait of Hormuz. At 9:33 am, Brent oil futures reached $90.18, marking a 4.71 percent increase, while WTI (West Texas Intermediate) crude oil futures on October climbed to $85.09, up by 2.03 percent. On Monday's opening hour, September crude oil futures on the Multi Commodity Exchange (MCX) were at ₹8125, up by 1.77 percent, and October futures stood at ₹7984, an increase of 1.75 percent from the previous close.
US Central Command's post on X revealed that their forces took limited and precise action against IRGC minelaying forces in the Strait of Hormuz, which posed an immediate threat. The IRGC claimed this as an 'act of aggression' and responded by launching missiles towards a US base in Jordan, though these were intercepted. Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, noted that oil prices began the week robustly after the initial US-Iran military confrontations.
They expressed concerns about prolonged tension and potential disruptions to energy flows from the Persian Gulf. The situation remains uncertain, with oil producers in the region growing more confident in navigating the Strait of Hormuz.
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