Noida, Sep 9 (APAC Media): Crude oil prices extended their gains in Asian trading on Wednesday, with Brent crude nearing the $100-a-barrel mark as rising tensions between the United States and Iran fuelled concerns over possible disruptions to oil supplies and shipping in the Gulf.
Brent crude futures for November delivery rose 1.4% to $99.32 a barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 1.5% to $94.44 a barrel as of 11 a.m. IST.
WTI crude futures were on track for a seventh straight session of gains on Wednesday, while both global oil benchmarks traded at their highest levels in several weeks.
The latest rise came after the U.S. military said on Tuesday that it had destroyed five Iranian oil tankers following missile attacks by Iran on U.S. naval assets.
Iran later fired missiles at U.S. targets in Jordan and warned Gulf states, including Kuwait and Bahrain, against providing support to U.S. forces.
The tensions intensified after Iran-backed Houthi forces launched attacks on Saudi Arabia on Tuesday, striking energy and economic facilities in several southern cities and injuring more than 70 people, according to Saudi authorities.
Saudi authorities said fires broke out at several energy facilities, including the Jazan refinery, although the extent of the damage and any impact on operations remained unclear.
The U.S. Central Command also released footage it said showed an Iranian vessel “sinking in the Gulf of Oman” after it was struck by U.S. forces on Tuesday. The command said the tanker was targeted “in response to attempted attacks” by Iran’s Islamic Revolutionary Guard Corps (IRGC) on a U.S. Navy warship.
U.S. Secretary of State Marco Rubio warned Tehran that Washington would continue targeting Iranian oil tankers in response to attempted attacks on U.S. naval vessels.
The latest strikes have added to mounting disruption around the Strait of Hormuz, a key passage for global oil shipments. Shipping traffic through the waterway has slowed sharply after Iran threatened retaliation against further U.S. military action.
Iran has also said it plans to establish a maritime exclusion zone around the Strait of Hormuz, raising further concerns over the movement of oil through the strategically important waterway.
Oil flows through Hormuz have declined, although some shipments are still moving as Gulf producers look for alternative routes and ports. The continued flow of crude has so far kept Brent from firmly breaking above $100 a barrel despite the worsening security situation.
Still, the risks to prices are increasing. Goldman Sachs has warned that crude could climb as high as $120 a barrel if attacks on Middle Eastern vessels intensify and disruptions to shipping worsen.
The sharp rise in oil prices is also reviving concerns over inflation, potentially complicating the outlook for central banks and interest rates.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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