Oil rises in price amid escalation of war between the US and Iran

The price of September Brent oil futures rose 1.2% to $85.72 per barrel. American WTI oil rose 0.8% to $79.98 per barrel.

The rise in prices accelerated after US President Donald Trump announced the resumption of the blockade of ships heading to or leaving Iranian ports. The US military continues attacks on missile and unmanned systems, naval facilities and coastal defense systems of Iran in the Strait of Hormuz.

Iran, for its part, announced the resumption of the closure of the strait and attacks on American targets in Jordan, Bahrain and Kuwait.

About a fifth of the world’s oil and liquefied natural gas supplies passed through the Strait of Hormuz before the war, so any further reduction in shipping risks disruption to the global energy market.

Additional concerns were raised by attacks on two tankers belonging to the fleet of the UAE state oil company ADNOC. Against this background, shipping companies have become more cautious about sending ships to the strait area, and prices for Middle Eastern oils for immediate delivery have risen.

Asian refiners are already looking for alternative supplies from West Africa, Latin America and Russia. At the same time, prices and margins for refining diesel fuel, aviation kerosene and fuel oil are rising in Asia.

Analysts note that world oil reserves remain sufficient for now. However, prolonged restrictions on movement through the Strait of Hormuz or attacks on oil and energy facilities could raise the price of Brent to about $100 per barrel, Reuters writes.