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Oil jumps after US downs Iranian missile barrage and strikes in Iraq
Analysts warned the attempted attack could reduce expectations of quick de-escalation, as Saudi refining disruptions and halted tanker traffic through the Strait of Hormuz add to supply tightness.
Oil prices rose after the US military said it knocked down an Iranian missile barrage and, with Saudi forces, struck sites in Iraq used by Tehran-backed militias, according to The Guardian Business.
The outlet also cited ING analysts saying the attack is “cold water” on hopes for swift de-escalation in the Persian Gulf. With Saudi oil infrastructure increasingly targeted, the risk of longer supply disruptions is growing, including reports that a 400k b/d Jazan refinery in Saudi Arabia has shut following Houthi attacks.
Tanker traffic through the Strait of Hormuz was described as essentially halted, and while Iran and Oman discussed managing vessel transits, Iran rejected an Oman proposal for a 50-50 shipping plan. Instead, Iran is reported to have insisted on oversight of both inbound and outbound vessels.
The same coverage pointed to energy-market stress beyond crude, saying the European gas market looks increasingly vulnerable ahead of winter and that QatarEnergy reportedly extended its force majeure for buyers in Asia and Europe through the end of September. It also said EU LNG imports were on track to fall more than 25% year on year in July, with gas storage at 56% full versus a 72% 10-year seasonal average, leaving heightened risk of elevated gas prices through the winter.
Latest closeWTI crude $81.23 ▼1.7%