Brent breaks past $90 as U.S.-Iran conflict rages on
Aerial image taken from a helicopter during a media visit shows five platforms over the Johan Sverdrup oil field in the North Sea, about 140 kilometers west of Stavanger, Norway, on December 3, 2019. (Photo: Tom LITTLE / AFP) (Photo: TOM LITTLE/AFP via Getty Images)
Tom Small | Afp | Getty Images
Oil prices rose on Monday as the ongoing conflict between the United States and Iran raised concerns about disruptions in energy shipments through the Strait of Hormuz following further US strikes and American military casualties.
International reference Brent crude oil September delivery rose nearly 2.77% to over $90 a barrel. US West Texas Intermediate crude oil August delivery rose nearly 2.4% to $84.49.
The latest tensions come after the US military confirmed a third American service member was killed in recent operations and investigators found unidentified remains near an Iranian strike in Jordan that previously left two US personnel dead and another missing.
American forces began their ninth consecutive night strikes against Iranian targets. “The strikes will continue to weaken Iran’s military capabilities, which are used to attack commercial ships and civilian sailors passing through the Strait of Hormuz,” US Central Command said. he said in the statement In X.
Renewed hostilities have revived concerns about the security of one of the world’s most important oil transit routes.
US Centcom said its attacks targeted Iran’s coastal surveillance and air defense systems, naval assets, as well as missile and drone storage facilities. American forces also attacked Islamic Revolutionary Guard troops linked to a July 17 attack on U.S. personnel in Jordan.
David Roche from Quantum Strategy emphasized in his note on Monday that the global crude oil market has contracted significantly with the decrease in Gulf exports.
“With such a depletion rate, oil stocks will shrink in September and even the United States will be stressed. This will increase TACO pressure on President Trump. Stay long on Brent with a target of $95 to $105 per barrel.”
