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Oil prices rise sharply after Iran launches attacks on tankers near strait of Hormuz
The Guardian • • general
Key Points:
- Oil prices surged nearly 5% to over $78 a barrel following attacks on fossil fuel tankers near the Strait of Hormuz, leading to US President Donald Trump declaring the ceasefire deal with Iran "over."
- Iran attacked at least three tankers in 48 hours, including one carrying liquified natural gas, causing at least four tankers to turn back and halting tanker traffic through the strategic strait, significantly raising risk perceptions.
- The collapse of the ceasefire also triggered a 5% rise in European gas prices, threatening higher household energy costs and potentially increased fuel prices ahead of the winter season.
- Despite the recent spike, analysts remain cautious about predicting oil prices returning above $100 a barrel, citing the market's resilience and alternative supply routes that have mitigated the impact of the Strait of Hormuz disruptions.
- The net effective loss to global crude supplies from the Strait of Hormuz blockade is estimated at 3.1 million barrels per day, far less than the initially feared 20 million barrels, due to alternative supply channels and increased production elsewhere.
