Oil prices rose more than 2% on \u200bTuesday, reversing some of the previous session’s losses, on worries about supply with the\u00a0Strait of \u200cHormuz\u00a0mostly shut and United States allies rebuffing calls to send warships to help tankers move through the vital waterway.<\/p>\n
Brent futures jumped $2.74, or 2.7%, to $102.95 a barrel by 0357 GMT, while US West Texas Intermediate crude gained $2.45, or 2.6%, to $95.95. In the previous session, Brent futures \u200bsettled 2.8% lower while US West Texas Intermediate (WTI) crude slid 5.3% after some vessels sailed through the \u200bcritical waterway.<\/p>\n
Read:\u00a0Pakistan has oil reserves for days, not months<\/p>\n
The Strait of Hormuz \u2013 a chokepoint for about 20% of the world’s oil and \u2060liquefied natural gas trade \u2013 has been largely disrupted by the\u00a0US-Israeli war on Iran, now in its third \u200bweek, raising concerns about supply shortages, higher energy costs and rising inflation.<\/p>\n
“The risks remain stark: It only takes one Iranian militia \u200bto fire a missile or plant a mine on a passing tanker to reignite the entire situation,” IG market analyst Tony Sycamore said in a note.<\/p>\n
Several US allies\u00a0rebuffed Donald Trump’s call\u00a0on Monday to send warships to escort shipping through the Strait of Hormuz, \u200bdrawing criticism from the US president, who accused Western partners of ingratitude after decades of support.<\/p>\n
“For now, oil \u200bmarkets are fixated on the duration of the conflict, halted supplies at Hormuz, and eventually the damage this chaos will leave on \u200coil \u2060infrastructure in the Gulf,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.<\/p>\n
Read More:\u00a0Oil shock and the import trap<\/p>\n
Meanwhile, traders said prices were further supported after a fire broke out in the\u00a0Fujairah Oil Industry Zone\u00a0after a drone attack during morning trade in Asia, though no injuries were reported.<\/p>\n
Middle East crude\u00a0benchmarks have soared to all-time highs, becoming the most expensive oil in the world, \u200bwith traders blaming the price \u200bspike on reduced supply \u2060available for delivery. The effective closure of the strait has forced the\u00a0United Arab Emirates, the Organisation of the Petroleum Exporting Countries’ third-largest producer, to shut in production, reducing its output \u200bby more than half, two sources told\u00a0Reuters.<\/p>\n
Also Read:\u00a0Biggest global oil supply disruptions in history<\/p>\n
Iran has asked India to\u00a0release three \u200btankers\u00a0seized \u2060in February as part of talks seeking the safe passage of Indian-flagged or India-bound vessels out of the Gulf via the Strait of Hormuz, three sources with knowledge of the matter told\u00a0Reuters.<\/p>\n
To curb rising energy costs, the head of the International \u2060Energy Agency \u200bsuggested member countries could release more oil, in addition to the 400 \u200bmillion barrels they have already agreed to draw from strategic reserves.<\/p>\n
Israel said it has detailed plans for at least three more weeks of war \u200bas its military struck sites across Iran overnight.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil prices rose more than 2% on \u200bTuesday, reversing some of the previous session’s losses, on worries about supply with the\u00a0Strait of \u200cHormuz\u00a0mostly shut and United States allies rebuffing calls to send warships to help tankers move through the vital waterway. Brent futures jumped $2.74, or 2.7%, to $102.95 a barrel by 0357 GMT, while …<\/p>\n","protected":false},"author":1,"featured_media":2350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts\/2346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2346"}],"version-history":[{"count":1,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts\/2346\/revisions"}],"predecessor-version":[{"id":2353,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts\/2346\/revisions\/2353"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/media\/2350"}],"wp:attachment":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}