Oil
Oil prices climb following vessel attacks in Strait of Hormuz
Crude futures advanced after reported strikes on ships in the Strait of Hormuz and infrastructure in Saudi Arabia.
Key points
- Brent crude futures rose to surpass 107 US dollars per barrel.
- Two vessels were reportedly struck in the Strait of Hormuz.
- An Aramco facility in eastern Saudi Arabia sustained a limited fire following an attack.
What happened
Crude oil prices moved upward during early trading on Wednesday following reports that two vessels had been hit within the Strait of Hormuz, according to Euronews and Reuters reporting. Iranian officials reportedly stated that new methodologies were deployed to target maritime traffic in the vital waterway.
Additional supply concerns emerged from the ongoing conflict involving the Houthis and Saudi Arabia. Authorities in Saudi Arabia confirmed that an assault on an Aramco building located in the eastern region of the kingdom generated a limited fire. Furthermore, debris originating from intercepted missiles launched by the Houthis resulted in four injuries within Riyadh.
Market response
International benchmark Brent crude increased by approximately one percent, trading above 107 US dollars a barrel in European morning sessions. Simultaneously, US West Texas Intermediate futures recorded a 0.5 percent gain, reaching 94.64 US dollars per barrel.
The supply apprehensions also influenced European gas markets, driving benchmark Dutch TTF gas futures to a four-year peak just above 86 euros per megawatt-hour. Equity markets across Europe experienced moderate increases during the same trading sessions.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
68.0% of Iran’s merchandise exports were fuels in 2023Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
