Brent and WTI rose for a second session on Thursday after the United States resumed strikes on Iran, disrupting oil flows through the region's main shipping routes. Traders are now watching how much crude leaves the Strait of Hormuz, where a Qatari LNG tanker sailed out overnight with Iran's permission. A drone attack on a tanker has also halted loadings at the Caspian Pipeline Consortium.
Oil prices rose for a second day on Thursday as renewed attacks between the United States and Iran disrupted oil flows through key shipping routes.
Brent futures rose $1.06, or 1.17%, to $91.80 a barrel as of 0812 GMT, after touching a low of $89.02 in the session. U.S. West Texas Intermediate crude gained 39 cents, or 0.46%, to $84.85 a barrel after hitting a session low of $83.21.
US hits IRGC targets in two-hour operation
The U.S. military said it had hit dozens of Islamic Revolutionary Guard Corps targets in Iran, including military command centres and drone facilities, in a two-hour operation launched after Tehran fired ballistic missiles at U.S. forces in the Middle East. U.S. Central Command said the operation began at 0000 GMT and ended at 0200 GMT on Thursday.
Since the conflict began on February 28, the Strait of Hormuz — which normally handles around a fifth of global oil and gas flows — has remained a focal point for oil markets. Tim Waterer, chief market analyst at KCM Trade, said the market is pricing the reality of ongoing strikes while safe passage through the strait remains a gamble: "the risk premium in oil is not going anywhere".
Traders watch flows through Hormuz and Bab el-Mandeb
However, analysts said investor focus was on the volume of oil exiting the key chokepoints and the possibility of a diplomatic breakthrough. Iran's Fars news agency said a Qatari LNG tanker passed through the Iran-designated route in the Strait of Hormuz with Iran's permission.
The Al Areesh tanker, which loaded a cargo at Qatar's Ras Laffan terminal around July 4 to 6, sailed out of the strait overnight on July 29, according to Kpler and LSEG data. The conflict has also disrupted shipping through the Bab el-Mandeb strait, creating a second pressure point for global oil flows alongside Hormuz.
Regional sources with knowledge of the matter told Reuters that Yemen's Houthi group is considering imposing fees on commercial ships sailing through the southern Red Sea, a week after declaring a naval blockade on Saudi Arabia.
Saudi joins US air strikes as pipeline suspends loadings
On Wednesday, the U.S. and Saudi Arabia attacked Iran-backed paramilitary forces in Iraq — the first time Saudi had publicly joined U.S. air strikes — in retaliation for drone attacks on Saudi oil targets launched from Iraq.
In another blow to supply, the Caspian Pipeline Consortium, quoted by the Russian news agency Interfax, said on Thursday that it had suspended oil loadings following a drone attack on a tanker.
Waterer added that for Brent to break convincingly above recent highs and sustain a move higher, the market would need clearer evidence of prolonged physical disruption — either a sustained reduction in flows through Hormuz or confirmed damage to key energy infrastructure.
Source: Investing.com
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