Brent rallies amid fresh US-Iran strikes
The front-month ICE Brent contract has gained by $1.70/bbl on the day from Friday, to trade at $91.24/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent crude’s price has opened the week ahead of the $90/bbl mark as Washington and Tehran target each other in a fresh round of airstrikes.
The US army has struck Iranian missile launchers on Iran’s Larak Island, amid threats that Iran was to launch mines into the Strait of Hormuz, Reuters reported.
Meanwhile, Tehran has retaliated by attacking US bases in Jordan and US military assets in the UAE, Al Jazeera reported.
This flare-up marks the first active fire exchange between Washington and Tehran since late July.
Oil prices gained after “the US carried out targeted strikes against Iran, drawing retaliatory strikes and reinforcing concerns about a prolonged stalemate in the Persian Gulf,” two analysts from ING Bank noted.
Downward pressure:
While there are no major downward pressures acting on Brent’s price today, the market will keep an eye out for any development in the formalisation of the Iran-Oman temporary navigational corridor through the Strait of Hormuz.
The development will support the restoration of some commercial navigation through the waterway that once carried one-fifth of global seaborne oil flows, market analysts said.
By Aparupa Mazumder
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