Traders brace for possible export disruptions as tensions escalate around the Strait of Hormuz.
Oil prices surged in early Asian trading on Wednesday after renewed military strikes involving Iran reignited concerns over the security of the Strait of Hormuz, one of the world’s most critical oil transit routes.
As of 8:15am Tokyo time on Wednesday (July 8), market data showed:
As of 8:15am Tokyo time on Wednesday (July 8), market data showed:
- Brent crude rose $2.17, or 3.01%, to $74.16 a barrel.
- West Texas Intermediate (WTI) gained $1.99, or 2.83%, to $72.43 a barrel.
- Murban crude climbed $2.29, or 3.43%, to $68.97 a barrel.
- US natural gas edged up 0.18% to $3.271 per million British thermal units.
The rally followed reports of multiple explosions in southern Iran, including near Bandar Abbas, Qeshm Island and Sirik, after the US announced what it described as “powerful” strikes on Iranian military targets in response to attacks on a Qatar-bound vessel transiting the Strait of Hormuz.
The developments intensified concerns that the conflict could spread further around the Strait of Hormuz, the strategic waterway through which about one-fifth of global oil supplies are transported.
Traders have been closely monitoring the Strait of Hormuz since tensions between Washington and Tehran began escalating.
While oil exports through the waterway have largely continued uninterrupted, markets remain highly sensitive to any military activity near key shipping lanes, as even short-lived disruptions could quickly tighten global supplies and push prices higher.
