Shafaq News
Crude oil prices soared about 7% onWednesday after U.S. President Donald Trump threatened fresh strikes againstIran, which could lead Iran to close the Strait of Hormuz to ship trafficagain.
Before the U.S. war with Iran about20% of global oil supplies passed through the waterway.
Brent futures rose $4.91, or 6.6%,to $79.07 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $4.27,or 6.1%, to $74.71.
That would be the biggest dailypercentage gains for both crude benchmarks since April and puts Brent on trackfor its highest close since June 19 and WTI on track for its highest closesince June 18.
U.S. President Donald Trump said aninterim agreement to end the war with Iran was "over" and that theUnited States was likely to launch new strikes on Wednesday night followingIranian attacks on U.S. bases in the Gulf.
In a flare-up of hostilities thatpushed up oil prices, Iran said on Wednesday it had targeted U.S. militarysites in Bahrain and Kuwait after U.S. forces struck Iranian targets inresponse to attacks on tankers in the Strait of Hormuz.
The attacks further undermined ashaky ceasefire agreement and dented hopes of turning the memorandum ofunderstanding signed on June 17 into a permanent peace deal to end the war,which began with U.S.-Israeli airstrikes on Iran on February 28.
"Fundamentally, the events ofthe last few days significantly weaken any confidence that the current 60-daytruce can still evolve into a permanent peace agreement," said Jorge Leon,head of geopolitical analysis at consultancy Rystad Energy.
DIESEL LEADS THE WAY
U.S. ultra-low sulfur dieselfutures soared over 14% in intraday trade after Russia introduced a ban ondiesel exports on Wednesday as part of a raft of measures to support thedomestic fuel market after systematic Ukrainian drone attacks on oil refineriestriggered shortages and price spikes.
Ukrainian drones struck threeRussian oil refineries, Russian tankers on the Sea of Azov, and pipelinepumping stations, Ukrainian and Russian officials said on Wednesday, in a majornight of strikes ranging from the Ukrainian border to the Urals mountains.
That diesel price spike boosted theU.S. 321-crack spread, which measures refining profit margins, to a recordhigh, according to LSEG data going back to 2001.
(REUTERS)
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