International oil prices rise on Hormuz tensions… Brent crude up 1.2%

A cargo ship anchored at Fujairah Port, UAE

International oil prices rose again on the 8th (local time) as armed clashes resumed near the Strait of Hormuz.

On this day, the closing price of July Brent crude futures on the ICE Futures Exchange was $101.29 per barrel, up 1.23% from the previous trading session.

On the New York Mercantile Exchange, the closing price of June West Texas Intermediate (WTI) crude futures was $95.42 per barrel, up 0.64% from the previous trading session.

However, on a weekly basis, Brent crude and WTI fell by 6.36% and 6.40%, respectively.

The recent reversal of international oil prices, which had been on a downward trend, is attributed to growing concerns that the ceasefire between the US and Iran could collapse due to clashes in the Strait of Hormuz.

On this day, the U.S. Central Command announced that it had neutralized two Iranian oil tankers attempting to penetrate the U.S. naval blockade and enter an Iranian port in the Gulf of Oman.

The previous day, Iranian forces used drones and missiles to target three U.S. destroyers passing through the Strait of Hormuz, and the U.S. military responded by striking Iranian military facilities in self-defense.

Currently, the ceasefire between the two countries is officially maintained, but continued small-to-medium scale armed exchanges are increasing market tension.

Experts analyzed that the market is overreacting to psychological factors and short-term news rather than actual supply and demand conditions.

Phil Flynn, Senior Analyst at Price Futures Group, pointed out that the market continues to react to news headlines, and while shipping in the Gulf is relatively smooth within expected ranges, the market is sensitive to localized variables rather than fundamental solutions.