Brent crude climbed toward $104 a barrel on Thursday, its highest level in a week, as attacks on tankers in the Gulf and the Strait of Hormuz stoked fears over Middle East oil supply. A hurricane threatening US offshore production added to the squeeze, and eurozone bond yields jumped on fresh inflation fears.
Brent crude, the global benchmark, climbed near $104 a barrel on Thursday, up 3.6% and its highest level in a week, as attacks on tankers in the Gulf and the Strait of Hormuz stoked fears over Middle East oil supply.
Earlier in the session, Brent had advanced $2.62 a barrel to $102.8, up 2.6%, before extending its climb later in the day. Attacks on tankers sailing through the strait reached a weekly high last week since the US and Israel unleashed the Iran war on 28 February, Reuters reported, citing maritime security sources.
There were at least 12 attacks on oil, liquefied natural gas and liquefied petroleum gas tankers around the strait in the week to 5 October, even as Gulf producers stepped up their oil exports. The US has also reduced its own output as a hurricane threatened offshore production, adding another front to the supply squeeze.
Eurozone bond yields have jumped again as higher oil prices sparked inflation fears, lifting borrowing costs across the region. Separately, European shares fell too, with the pan-European Stoxx 600 index down almost 1% to its lowest level in almost four months.
Source: The Guardian
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