Oil prices rise in international markets

Crude oil prices rose in international markets after the US launched a new round of military strikes against Iran and reimposed a naval blockade on the country's ports.

Despite early fluctuations in trading on Wednesday (July 15), oil prices on both major indices were on the rise.

US West Texas Intermediate (WTI) crude oil prices for August delivery rose 0.45 percent to $79.70 a barrel. At the same time, the price of international benchmark Brent crude for September delivery rose 0.68 percent to $85.31 a barrel.

The US Central Command (Centcom) said that dozens of military targets were attacked in the Strait of Hormuz and coastal areas of Iran in a seven-hour operation on Tuesday night. The strikes, which used fighter jets, drones and naval vessels, targeted Iranian missile and drone bases, naval installations and coastal defenses.

Centcom said the strikes were aimed at reducing Iranian threats to commercial shipping. The United States also reimposed a naval blockade on Iranian vessels entering and leaving its ports on the same day.

In a subsequent statement, Centcom chief General Brad Cooper accused Iran of deliberately targeting civilians and attacking seven commercial vessels over the past week, killing, wounding or missing nearly a dozen sailors, he said.

Energy market analysts said the recent tensions have dashed hopes of a quick return to normal in the Strait of Hormuz. Sol Kevonik, senior energy analyst at MST Markit, said the renewed attacks and blockades are rekindling the conflict.

According to him, if the current level of conflict continues for a few more weeks, the price of crude oil in the international market could again reach $100 per barrel. And if energy infrastructure in the Middle East is directly targeted, there is a risk that oil prices will rise further.

Source: CNBC