Brent gains as US-Iran war resumes
The front-month ICE Brent contract has gained by $2.40/bbl on the day, to trade at $94.77/bbl at 09.00 GMT.
IMAGE: Oil storage tanks. Getty Images
Upward pressure:
Brent crude’s price has rallied as tensions between the US and Iran escalated this week.
Oil has reached its “highest level in more than a month,” as tensions in the Persian Gulf escalated further, two analysts from ING Bank noted.
The US Central Command (CENTCOM) has resumed strikes on Iranian assets, while Tehran has warned of major consequences if Washington continues its drone barrage in the region.
“Iran hit two oil tankers in the region yesterday. The US, meanwhile, carried out additional overnight strikes on Iranian targets, adding fresh geopolitical risk premium to the market,” ING Bank’s analysts added.
Downward pressure:
Brent’s price has come under some downward pressure following a positive statement from US secretary of energy Chris Wright.
Wright claimed that 17 million bbls of crude oil transited the Strait of Hormuz on Monday, Reuters reported.
The uptick in flows marked the highest level of crude oil to pass through the narrow waterway in recent months, Reuters added citing Wright.
“When you factor in bypass volumes, it suggests Persian Gulf oil flows are above pre-war levels. But these numbers are uncertain,” ING Bank’s analysts added.
By Aparupa Mazumder
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