The Brent Oil Today records gains this Thursday after a new escalation of tensions between the United States and Iran increased market concerns about possible disruptions to global oil supply. The rise comes after new U.S. military attacks on Iranian targets, raising caution among investors.
Brent OilBrent oil futures contracts, an international benchmark for oil prices, track the increase seen in the market. Meanwhile, West Texas Intermediate (WTI), the main U.S. benchmark, rose 1,03% and reached US$ 78,82 per barrel for delivery in September.
The crude oil contract for August also posted a gain of 1,06%, trading at US$ 74,29 per barrel. In the previous session, oil prices had already accumulated gains of more than 4%, showing that the conflict in the Middle East has once again started pressuring the international market.
According to the U.S. Central Command, the new military attacks were launched in response to Iran’s actions against merchant ships sailing through the Strait of Hormuz, one of the most important maritime routes for transporting the world’s oil.
The current U.S. president, Donald Trump, also previously signaled that he does not intend to resume negotiations with Iran. In addition, he said that the ceasefire between the two countries was "over" after another sequence of attacks recorded in the region.
The impact of these events made Brent Oil Today react quickly, since any threat to the flow of oil through the Strait of Hormuz could affect global supply and raise the commodity’s transportation costs.
According to Saxo, "The market is again being forced to price in the risk that new attacks on shipping, or a broader deterioration in relations between the U.S. and Iran, could delay normalization of the flow through the Strait of Hormuz."
The firm added that, as the Strait of Hormuz is one of the main corridors for global oil trade, "even a limited disruption can have a disproportionate impact on immediate prices, freight costs, and market sentiment."