Oil prices jumped on Tuesday after reports that two tankers were struck by projectiles in the Strait of Hormuz, pushing Brent above $92 a barrel and WTI near $88. The attack follows a weekend of renewed U.S.-Iran strikes and comes as a U.S. naval blockade has already cut Iran's crude exports to near zero.
Oil prices surged after reports that two supertankers were struck by projectiles in the Strait of Hormuz, the narrow waterway that carries a large share of the world's seaborne crude. The West Texas Intermediate contract for October delivery advanced 2.9% to $88.28 a barrel, while the November Brent contract climbed 2.5% to $92.73 a barrel. Both benchmarks are now at their highest levels in almost two weeks.
Two tankers hit east of Oman
The Saudi-flagged Sidr, a large crude carrier operated by Bahri, was struck while sailing east of Khasab, Oman, according to a Bloomberg report citing maritime risk consultant Marisks. The Senegal Prosperity, operated by South Korea's Sinokor, was hit by three objects in the same area. Marisks said both vessels were attempting to exit the Persian Gulf when they were struck.
Weekend strikes reignite the standoff
The tanker attack follows a weekend in which Washington and Tehran exchanged fire for the first time in about a month. The U.S. struck Iran's Larak Island, and Tehran retaliated by attacking two U.S. military bases in Jordan. President Trump threatened further strikes against Iran on Monday morning.
A blockade that already emptied Iran's exports
The strait has been a flashpoint since April, when a U.S. naval blockade began choking off Iran's oil shipments through Hormuz and the Gulf of Oman. Iran had been exporting between 1.3 and 1.9 million barrels a day before the blockade, and by May no crude shipment successfully passed the blockade at all. By August, Iran's central bank said export revenue had fallen to zero. The blockade briefly lifted in mid-June under a U.S.-Iran memorandum of understanding before restrictions returned in July.
Technicals point higher
Fawad Razaqzada, market analyst for global macroeconomics at Forex.com, said WTI is testing the $86.50-$88.50 region, a level that has acted as resistance before and lines up with a long-term bearish trend line. A sustained break above it, he said, would be "technically significant" and could signal a larger move higher.
Sources: MarketWatch, Crypto Briefing
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