Oil rises US$2 as Iran announces closure of Hormuz following US strikes Global oil consumption is roughly 100 million barrels per day - Iran has continued to block most shipping through the strait while Washington has imposed its own blockade of Iranian ports. PHOTO: REUTERS OIL prices climbed more than US$2 a barrel Thursday (Jun 11) as Iran declared the critical energy chokepoint, the Strait of Hormuz, closed after the US launched additional strikes against Iran. Brent futures rose US$2.30, or 2.47 per cent, to US$95.40 a barrel, while US West Texas Intermediate (WTI) crude climbed US$2.60, or 2.89 per cent, to US$92.63. US crude futures gained more than US$3 earlier in the session. Iran’s top joint military command announced the closure of the Strait of Hormuz on Thursday, including oil tankers and commercial ships, saying any vessel that will attempt passage will be shot at. However, the US military said on X that commercial ships continue to transit in and out of the strait. It also said no US warships have been struck in the strait, after Iran’s state media reported US ships near the waterway were targeted by missiles and drones. US forces began launching additional strikes against multiple targets in Iran at 5.15 pm EDT (5.15 am in Singapore on Thursday), the latest in an escalating exchange of attacks that threaten to reignite a full-scale war, which was paused in early April when the two sides agreed to a fragile ceasefire. Asean Intelligence Get insights into businesses across South-east AsiaGet the free report Iran’s months-long blockade of the strait, which normally carries a fifth of the global oil and gas shipments, have kept oil prices elevated. Separately, US crude inventories fell by 7.2 million barrels to 426.5 million barrels in the week ended Jun 5, the US Energy Information Administration said on Wednesday, compared with analysts’ expectations in a Reuters poll for a 4 million-barrel draw. US crude inventories, including those from strategic reserves, have fallen by 79 million barrels since the Iran war began on Feb 28, as the world’s largest producer stepped into fill supply gaps left by the effective closure of the strait. REUTERS Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Share with us your feedback on BT's products and services TRENDING NOW ‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse CICT’s S$3.9 billion Paragon buy draws scrutiny over timing, funding at EGM Japan’s Asics to spin off popular Onitsuka Tiger sneaker business; shares rise Singapore Kitchen CEO, senior manager charged with alleged fraud, falsifying accounts; both to stay in jobs for now
Oil rises US$2 as Iran announces closure of Hormuz following US strikes Global oil consumption is roughly 100 million barrels per day - Iran has continued to block most shipping through the strait while Washington has imposed its own blockade of Iranian ports. PHOTO: REUTERS OIL …
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.
Iranian officials reported strikes on US radar and air defense sites in Kuwait and Bahrain, along with the interception of two oil tankers in the Strait of Hormuz. The United States conducted strikes on Iranian targets following the deaths of three US soldiers, with the Pentagon stating the actions aimed to degrade capabilities affecting shipping.
Houthi forces in Yemen announced plans to blockade Saudi ports, while both US and Iranian leaders issued statements on further escalation.