Oil Rises as Fresh Middle East Fighting Keeps the Strait of Hormuz Closed
Oil traded higher early on Friday as fresh fighting between the US and Iran kept the Strait of Hormuz closed.West Texas Intermediate crude oil for August delivery was last seen up 2.5% at $80.94 per barrel, while September Brent crude was up 2.3% at $86.16.The gains followed reports that the US struck bridges around Iran's port city of Bandar Abbas, according to The Wall Street Journal. Iran responded with attacks on neighboring countries and strikes on ships in the Persian Gulf.The fresh fighting is keeping the Strait of Hormuz closed, the chokepoint for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war. About 285 ships remain trapped in the Persian Gulf, according to hormuzstraitmonitor.com, with 10 ships moving through the Strait in the past day."Crude oil extended its rally, with Brent climbing back above USD 85 a barrel as energy and refined fuel flows through the Strait of Hormuz continues to slow amid the escalating conflict between the US and Iran. The renewed disruption has interrupted the recent recovery in regional supply, reviving concerns about tighter global markets," Saxo Bank noted.
