Oil up for 3rd day as US launches fresh strikes on Iran
Oil prices climbed on Thursday, extending gains for a third day in a row, after the United States carried out fresh strikes on Iran, weakening hopes of a resolution to the Iran war and delaying expectations of a full reopening of the Strait of Hormuz, through which one-fifth of pre-war global oil supplies typically pass.
Crude oil price on July 9
Brent crude futures gained 78 cents, or 1%, to $78.8 a barrel while U.S. West Texas Intermediate (WTI) crude futures rose 74 cents, or 1.01%, to $74.26 a barrel. On Wednesday, the two benchmarks had settled at their highest levels in more than two weeks after U.S. President Donald Trump warned of additional strikes on Iran as early as Wednesday night.
The U.S. military said the latest strikes were aimed at keeping the strategically important Strait of Hormuz open to shipping, just hours after Trump declared that the interim agreement to end the war was "over".
The United States said the latest military action was in response to Tuesday's attack on three tankers passing through the Strait of Hormuz. The strikes reportedly shook several cities along Iran's southern coast and left parts of the region without electricity.
Iran, meanwhile, said on Wednesday that it had targeted U.S. military facilities in Bahrain and Kuwait in retaliation for earlier American strikes on infrastructure.
Also read: Iran: Gulf on boil again as new US strikes mark fresh escalation; fear rises of a return to war
Where are prices headed?
"The latest developments have effectively thrown the future of the 60-day negotiation process into doubt," Bjarne Schieldrop, chief commodities analyst at SEB, told Reuters. "In my view, a price closer to $80 a barrel is more consistent with current market fundamentals than $70," he added.
Crude oil price on July 9
Brent crude futures gained 78 cents, or 1%, to $78.8 a barrel while U.S. West Texas Intermediate (WTI) crude futures rose 74 cents, or 1.01%, to $74.26 a barrel. On Wednesday, the two benchmarks had settled at their highest levels in more than two weeks after U.S. President Donald Trump warned of additional strikes on Iran as early as Wednesday night.
The U.S. military said the latest strikes were aimed at keeping the strategically important Strait of Hormuz open to shipping, just hours after Trump declared that the interim agreement to end the war was "over".
The United States said the latest military action was in response to Tuesday's attack on three tankers passing through the Strait of Hormuz. The strikes reportedly shook several cities along Iran's southern coast and left parts of the region without electricity.
Iran, meanwhile, said on Wednesday that it had targeted U.S. military facilities in Bahrain and Kuwait in retaliation for earlier American strikes on infrastructure.
Also read: Iran: Gulf on boil again as new US strikes mark fresh escalation; fear rises of a return to war
Where are prices headed?
"The latest developments have effectively thrown the future of the 60-day negotiation process into doubt," Bjarne Schieldrop, chief commodities analyst at SEB, told Reuters. "In my view, a price closer to $80 a barrel is more consistent with current market fundamentals than $70," he added.
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