Oil rises in response to near-halt in Hormuz

On Friday, July 10, oil prices rose and are set to end the week in the red after a new escalation between the US and Iran that has nearly halted shipping through the Strait of Hormuz.

This was reported by Economic Pravda with reference to Reuters.

The report said that Brent futures rose 19 cents, or 0.25%, to USD 76.49 per barrel.

US WTI rose 19 cents, or 0.26%, to USD 72.27.

For the week, Brent could gain about 6%, while WTI could gain 5%.

Vandana Hari, founder of analytics firm Vanda Insights, said prices had retreated from midweek highs, but a significant risk premium remained due to the near-total shutdown of transit through the Strait of Hormuz and no signs of a quick recovery in shipping.

The continued price gains are dampening market expectations that the US and Iran could return to diplomatic talks.

On Thursday, Iranian forces attacked US military infrastructure in the Gulf in retaliation for US strikes on Iran's southern coastal and eastern provinces, putting pressure on a three-week-old ceasefire.

Iranian media also reported multiple explosions in the south of the country, including in Bushehr, home to a nuclear power plant.

As Ukrainian News Agency earlier reported, on Thursday, July 9, crude oil prices fell below USD 73 per barrel, snapping a two-day rise, even as the US military confirmed the mission of strikes on Iran for the second day in a row, heightening tensions and concerns about energy supplies from the Middle East.