Oil Prices Break Above $101 as U.S.-Iran Clashes Intensify

【Financial News New York = Correspondent Lee Byung-chul】  International oil prices surged more than 3% to above $100 per barrel as armed clashes between the United States and Iran intensified again. As attacks on tankers around the Strait of Hormuz spread, concerns over disruptions to global crude supplies have resurfaced. Goldman Sachs warned that oil prices could exceed $120 per barrel if the situation worsens.
At 11:12 a.m. local time on the 10th, Brent Crude Oil futures, the benchmark for international oil prices, were trading at $101.25 per barrel, up 3.4%, as of 11:12 a.m. Eastern Time. Brent crude had not traded above $101 since July. West Texas Intermediate crude oil (WTI) futures also rose 3.6% to $96.38 per barrel.
The factor driving oil prices higher was the military conflict between the United States and Iran. The U.S. military destroyed five Iranian crude-oil tankers the previous day in retaliation for Iran’s attempted attack on a U.S. warship. United States Central Command (CENTCOM) said the U.S. warship evaded the Iranian attack and that there were no U.S. military casualties.
The market is paying particular attention to the Strait of Hormuz, a key passage for global crude shipments. As Iran continues attacking commercial vessels operating in and near the Strait of Hormuz, concerns are growing that crude exports from the Persian Gulf could decline again.
Daan Struyven, co-head of global commodities research at Goldman Sachs, said in an interview with CNBC, "The risk of international oil prices exceeding $120 per barrel is increasing as attacks on vessels intensify."
Goldman Sachs’ base-case outlook is that crude exports from the Persian Gulf will gradually recover as oil-producing countries use alternative shipping routes and additional pipelines. However, the successive tanker attacks have increased the likelihood of a scenario in which exports do not return to normal over the coming months, the analysis said.
The United States and Iran refrained from direct hostilities for about a month after their clashes last July, while the United States had also focused more on economic pressure than military action. But attacks by Iran on commercial vessels around the Strait of Hormuz, followed by U.S. retaliation, are once again driving international oil prices higher through a supply shock originating in the Middle East.



[email protected] Correspondent Lee Byung-chul Reporter