Fresh U.S. Strikes Complicate Iran Deal
Hormuz Shutdown Sends Capital Flooding Back Into Renewables A breakthrough depolymerization technology is… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The new U.S.
strikes on missile sites and boats in southern Iran are further clouding the market view of how the nearly three-month-long crisis will unfold.
Oil pricesjumpedearly on Tuesday in Asian trade following the strikes.
Prices slumped by 5% on Monday due to hopes of a U.S.-Iran deal.
The fresh strikes, however, are complicating the situation in the Persian Gulf and around the Strait of Hormuz, and giving markets pause in the optimism that a framework agreement between the United States and Iran could be reached.
labeled the new strikes on Iran as“self-defense,”and Central Command spokesperson Capt Tim Hawkins said the U.S.
military “continues to defend our forces while using restraint during the ongoing ceasefire.” It’s unclear how the strikes would affect the ceasefire.
It is unclear how Iran would respond to these, either.
President Donald Trump said this weekend that the Strait of Hormuz would reopen, but there has been no sign that traffic is moving freely despite anuptickin vessels carrying energy cargoes making it out of the Persian Gulf en route to buyers.
The noise around a potential deal has continuously trumped market fundamentals in recent weeks, with traders trying to play the market on hopes of an agreement and largely ignoring the global energy crunch, with most supply from the Middle East still trapped behind the Strait of Hormuz.
Oil traders don’t want to think about the worst-case scenario, but the market needs to brace for aspike in oil prices in Julybecause four months of closed Strait of Hormuz is a recipe for a “disaster” and global recession, Fereidun Fesharaki, Chairman Emeritus of energy consultancy FGE NexantECA, toldCNBCearlier this week.
“Nobody wants to think about the worst-case scenario.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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