Oil prices rise again after renewed strikes between Iran and the US

Oil prices have started the week on a positive note after hitting their lowest level since the start of the war on Friday as the fragile truce between Iran and the United States is again in jeopardy. August Brent crude futures fell 11.8% to $72/barrel, just 3% above their pre-war level on February 28.

 

At the same time, the quotes did not react to the US strikes in response to Iran's attack on a Singapore-flagged container ship carrying more than 2 million barrels of oil from Qatar off the coast of Oman on June 25. The US struck targets in Iran - missile and drone storage facilities, as well as a coastal radar station, and continued the attacks on June 28.

 

Before the tanker incident, ships were actively transiting the Strait of Hormuz, both from the Iranian side and via the Omani route recommended by Western navies. Iranian authorities have again warned that passage outside the country's designated transit route is not permitted.

 

Within hours, Iran responded by striking US bases in Bahrain and Kuwait. The IRGC Navy command promised to create "hell" for all US military facilities in the region and to impose tough measures on ships that violate the requirements.

 

US President Trump, commenting on the situation, said that Washington was reacting to "another violation" by Tehran of the ceasefire agreement on June 18. "It seems they will never learn anything! There may come a time when we will no longer be able to exercise restraint and will be forced to militarily complete what we have started and very successfully. If that happens, the Islamic Republic of Iran will cease to exist!"

 

But this morning, an hour before the opening of stock trading, a US official told Axios that the US and Iran had agreed to cease military action in the Persian Gulf and resume talks on controlling the passage of ships through the Strait of Hormuz.