SINGAPORE: Oil extended gains on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on US infrastructure in the region.
Brent futures climbed 99 cents, or 1.2 percent, to $85.72 a barrel at 07:00 a.m. Saudi time. West Texas Intermediate futures gained 64 cents, or 0.8 percent, to $79.98 a barrel.
Oil prices closed up 2 percent at a one-month high on Tuesday as attacks exacerbated a supply disruption in the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas passed prior to the beginning of the US-Israeli war on Iran.
“While the physical oil market remains adequately supplied, any further escalation involving the Strait of Hormuz or additional sanctions on Iranian exports could quickly tighten market sentiment and add further risk premiums,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Early on Wednesday, the US also began a fresh round of strikes “to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz,” the US military said.
