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US oil prices jump after US military launches strikes against Iran

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TOKYO, July 8 : U.S. oil prices jumped nearly 3 per cent in early trade on Wednesday, extending the previous session's gains, after the U.S. military launched a series of strikes against Iran, heightening concerns that a fragile truce was faltering.

The strikes against Iran were in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz, U.S. Central Command said on Tuesday.

U.S. West Texas Intermediate crude was up $1.95, or 2.8 per cent, at $72.39 a barrel as of 2215 GMT.

WTI settled 2.8 per cent higher on Tuesday before extending gains in post-settlement trade, after the U.S. revoked the general licence authorising the sale of Iranian crude following the Iranian attacks on commercial vessels.

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Qatar blamed Iran for attacking the vessels, including the huge Qatari liquefied natural gas tanker, the Al Rekayyat, which reported being struck by a drone that caused a fire in its engine room. The crew were safe and being evacuated.

A Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, was also damaged off Oman, maritime security sources said. The cause was not immediately clear.

The developments reignited fears of disruptions to tanker traffic through the Strait of Hormuz.

Source: Reuters

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