"Global oil prices" continue to surge after Trump threatened retaliation against Iran and the Houthi rebels announced a naval blockade against Saudi Arabia.
"Global oil prices" continued to rise after Trump announced Iran must pay a multiplied price, while the Houthi group in Yemen declared a naval blockade against Saudi Arabia, increasing concerns about global oil supply.
On July 21, 2569 at 02.25:XNUMX p.m., CNBC news agency reported that Global oil prices rose in Monday's trading amid escalating tensions in the Middle East after President Donald Trump said Iran would pay dearly for the deaths of three U.S. soldiers. Meanwhile, the Houthi group, supported by Iran, announced a blockade of Saudi Arabian shipping lanes.
Brent crude oil futures, the global benchmark, rose 1.3% to close at $89.22 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude oil futures increased 0.9% to close at $83.23 per barrel, bringing oil prices up approximately 20% this month.
Previously, Brent crude oil prices surged nearly 4% to above $90 per barrel after the US confirmed at least three soldiers had been killed in fighting with Iran. Prices then softened slightly after an Iranian Foreign Ministry spokesman indicated that negotiations with the US were still possible if it benefited Iran.
Trump posted via Truth Social, "Every time Iran kills an American soldier, they will pay a price many times greater," adding that he had instructed the Department of Defense and the US military leadership.
Meanwhile, the Houthi rebels in Yemen announced a blockade of Saudi Arabian shipping, which could further exacerbate oil supply problems after Iran attacked oil tankers in the Strait of Hormuz. The Houthis also threatened to close the Bab el-Mandeb Strait, a vital route connecting the Red Sea to global markets.
In the past, Saudi Arabia has diverted millions of barrels of oil per day through pipelines to Red Sea ports to reduce its reliance on the Strait of Hormuz, which plays a crucial role in stabilizing the global oil market during the height of conflict between the United States and Iran.
Meanwhile, the United States continued its offensive against Iran for the ninth consecutive night in retaliation for attacks on oil tankers in the Strait of Hormuz. Iran has been attempting to force the ships to pass through its waters, resulting in at least two crew members killed and more than 12 injured this month.
The UK Maritime Trade Operations Centre (UKMTO) reported that the Malta-registered oil tanker Kavomaleas was struck by stray shells off the coast of Oman over the weekend, causing a fire. The crew were evacuated and rescued safely.
In addition, Iran has fired missiles at US allies in the Middle East, most recently attacking a power plant and desalination plant in Kuwait for the second time in just two days.
This is a result of soaring oil prices, which have pushed the average price of gasoline in the United States back to $4 per gallon for the first time since June.
Amrita Sen, founder and director of research at Energy Aspects, warned that if shipping through the Strait of Hormuz slows significantly while global oil stocks remain low, oil prices could surge past $100 per barrel, even though the market is currently underestimating the risk.
refer : cnbc.com
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