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Brent jumps above $85 as Hormuz cease-fire unravels
American forces reimposed a naval blockade on Iranian ports and struck dozens of targets, while Tehran hit tankers moving through the strait without permission.
The U.S.-Iran cease-fire intended to keep the Strait of Hormuz open is deteriorating, with the U.S. reimposing a naval blockade on Iranian ports and conducting strikes on dozens of targets along Iran's coast, according to OilPrice.
In response, Iran has struck tankers moving through the strait without its permission, and Brent crude has rebounded to above $85 a barrel, the report says. The move marks the second time this year markets have had to price a full stop to roughly a fifth of the world's seaborne oil.
OilPrice also links demand patterns in China to the renewed stress in the shipping chokepoint, noting that in China's biggest cities, ride-hailing can be cheaper than driving a private car even as gasoline gets pricier.
The report cites rising ride-hailing usage, with 3.05 billion taxi and rideshare trips in May, up 6% year over year, driven by a weak job market pushing new drivers into ride-hailing and increased competition from cheap electric cars that have helped keep fares sliding even as fuel costs rise.
Latest closeWTI crude $79.90 ▲2.2%|Brent $85.36 ▲2.5%|Gasoline (RBOB) $3.042 ▼3.9%