Crude oil prices have surged up to 2% to reach a one-month high following a breakdown of the June truce and a sharp escalation in military actions between the United States and Iran.
Brent crude futures climbed to approximately $85.31 a barrel, while West Texas Intermediate (WTI) gained ground to trade around $79.69 a barrel.
Tehran announced it has closed the vital waterway, which historically accommodates roughly 20% of global oil and liquefied natural gas (LNG) flows.U.S. Blockade and Air Strikes , The U.S. military launched a fresh wave of air strikes to degrade Iranian capabilities targeting commercial shipping, alongside reimposing a strict naval blockade on all Iranian ports.
Iran’s army and the Islamic Revolutionary Guard Corps (IRGC) executed drone and missile counter-attacks targeting U.S. and allied infrastructure across Jordan, Bahrain, and Kuwait.
Data from Goldman Sachs reveals that regional Gulf oil exports plummeted below 50% of pre-war levels (roughly 11 million barrels per day) over the last week.
Analysts note that if diplomatic avenues fail to reopen shipping channels, Brent crude is highly likely to surpass $110 a barrel by the fourth quarter of this year.
Note By Alessandro Bazzoni