Shafaq News- Singapore
Oil extended gains on Wednesday as President Donald Trump reimposed anaval blockade on all Iranian ports and Tehran launched strikes on U.S. infrastructure in the region.
Brent futures climbed 99 cents, or 1.2%, to $85.72 a barrel at 0400GMT. West Texas Intermediate futures gained 64 cents, or 0.8%, to $79.98 abarrel.
Oil prices closed up2% at a one-month high on Tuesday as attacks exacerbated a supply disruption inthe Strait of Hormuz, through which about afifth of the world's oil and liquefied natural gas passed prior to the beginning of the U.S.-Israeli war on Iran.
"While thephysical oil market remains adequately supplied,any further escalation involving the Strait of Hormuz or additional sanctionson Iranian exports could quicklytighten market sentiment and add further risk premiums," said PriyankaSachdeva, senior market analyst at Phillip Nova.
Early on Wednesday,the U.S. also began a fresh round of strikes "to continue degradingIranian capabilities used to attack commercial shipping in the Strait ofHormuz," the U.S. military said.
Tehran says it hasagain closed the strait after hostilities betweenIran and the U.S. reignited last week, fraying an already fragile truce reachedin June after several months offighting.
"I'll save theenergy targets for last, but ultimately we'll hit energy targets," Trumptold Fox News inan interview aired Tuesday night on "Special Report with Bret Baier".
Iran's army said earlyon Wednesday that it had launched drone attacks against U.S. positions atJordan's Azraq base. There was no immediate comment from the Pentagon.
Iran's IslamicRevolutionary Guard Corps said they targeted weapons and storage facilities in Bahrain and Kuwait. Reuters could not immediately verify the reports.
The flare-up over thelast few days has heightened doubts that a memorandum of understanding signedlast month would lead to a permanent halt to thewar, which has engulfed Iran's neighbors.
"The chances ofoil moving back toward $100 in the reasonably near term are still meaningfulif hostilities intensify which damages energy infrastructure around theGulf," Tim Waterer, chief market analyst at KCM Trade said, noting Brentprices could remain at $75-$80 a barrel if diplomatic efforts helped reopen the strait.
"For now, therisk premium is still embedded, but it'snot a one-way bet given that there remain incentives for both sides to find adiplomatic solution."
(Reuters)
Only the headlineis edited by Shafaq News.
