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Oil jumps to a two-week high as Iran ceasefire doubts fade
Prices rose more than 5% on Wednesday, after Iranian attacks on commercial ships raised shipping risk around the Strait of Hormuz.
Oil prices surged to a two-week high on Wednesday, with crude gaining more than 5% after a new escalation in the U.S.-Iran standoff renewed concerns about security in the Strait of Hormuz, according to ING analysts cited by OilPrice.
ING said the market appeared complacent about a U.S.-Iran ceasefire and the prospects for stable oil flows through the strait, arguing hopes for a quick rebound in regional supply had been too optimistic.
The backdrop included Iranian attacks on three commercial ships on Tuesday, including an oil tanker and an LNG carrier, which prompted some shipowners and operators to pause transits as the security situation deteriorated.
The flare-up intensified further after Iran struck U.S. military bases in Bahrain and Kuwait, and after U.S. President Donald Trump said the ceasefire was “over” and the mid-June memorandum was a “waste of time,” while the Trump administration revoked a temporary sanctions waiver that had allowed Iran to sell oil and petrochemicals.
Latest closeWTI crude $84.41 ▲6.5%