Oil price rises above $95 as Middle East conflict escalates
12 reported
The price of oil has risen above $95 a barrel for the first time in six weeks, according to a report from The Guardian. The increase follows renewed US-Iran aggression over the Strait of Hormuz and Houthi threats to target vessels carrying Saudi oil through the Bab el-Mandeb strait. Brent crude had peaked at $126 a barrel in April during the conflict but fell to as low as $71 at the start of July. The price reached $95.24 on Wednesday before easing to $94.40 by lunchtime, up more than 3% on the previous day. The price increase followed an 11th night of strikes on Iran, including on aircraft hangars and drone storage sites, despite diplomatic efforts to salvage an interim ceasefire deal. Donald Trump said strikes would intensify in a war that has so far cost the US $37.5bn. Analysts at Goldman Sachs warned that oil prices could reach $120 a barrel by the end of the year unless exports via Hormuz restart.
What’s reported
Oil price breached $95 a barrel for the first time in six weeks.
Brent crude peaked at $126 a barrel in April and fell to $71 at the start of July.
Price reached $95.24 on Wednesday, then eased to $94.40, up more than 3% from the previous day.
The price increase followed an 11th night of strikes on Iran, including on aircraft hangars and drone storage sites.
Donald Trump said strikes would intensify; the war has cost the US $37.5bn.
Goldman Sachs analysts said oil could reach $120 a barrel by year-end unless Hormuz exports restart.
IEA head Fatih Birol said global oil markets benefited from “cushioning factors” but warned against complacency.
Cushioning factors included release of about 400m barrels of emergency oil and oil products by IEA members, and alternative export routes by Saudi Arabia and UAE.
Norway’s Equinor reported profits almost doubled to $11.5bn in the three months to end of June.
Trump threatened to destroy a bridge or power plant each time Iran shoots at a ship in the Strait of Hormuz.
Iran has responded by targeting energy infrastructure and desalination plants in neighboring Gulf countries.
UN Secretary General António Guterres described such attacks as unacceptable.
Key figures
Donald Trump, former US president (stated as saying strikes would intensify)
Fatih Birol, head of the International Energy Agency (IEA)
António Guterres, UN Secretary General
Equinor, Norway’s state oil company
Sources: The Guardian
