U.S.-Iran Conflict Reignites... Brent Crude Jumps 3%, Tops $90

[Financial News, New York = Lee Byung-chul, correspondent] International oil prices surged more than 3% as military clashes between the United States and Iran intensified again. Brent crude climbed above $90 a barrel as concerns resurfaced over supply disruptions in the Strait of Hormuz, a key passage for global oil shipments.
As of 7:20 a.m. Eastern Time on the 31st, Brent crude futures were trading at $90.97 a barrel, up $2.87, or 3.26%, from the previous session. West Texas Intermediate crude oil (WTI) also rose $2.91, or 3.49%, to $86.31 a barrel.
The sharp rise in oil prices followed renewed direct attacks between the United States and Iran. On the 30th, the U.S. military struck two launch sites on Larak Island in the Strait of Hormuz. It was the first direct U.S. attack on Iran since late July. Iran said it retaliated by attacking two U.S. Air Force bases in Jordan.
Markets are paying particular attention to the risk of disruptions to oil transport through the Strait of Hormuz. Before the war began in late February, about one-fifth of global crude supply passed through the strait. As fears of ship attacks grew, the number of commodity carriers confirmed to have passed through the strait over the weekend fell to as few as five vessels per day. The United Kingdom Maritime Trade Operations (UKMTO) said on the 29th that one tanker was hit by a projectile while entering the strait.
Giovanni Staunovo, an analyst at UBS, told Reuters that oil prices rose because military attacks resumed in the Middle East and concerns grew over additional crude supply disruptions.




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