Crude oil: WTI rises as the market becomes increasingly worried about the further escalation of the conflict between the United States and Iran
Crude oil surged as markets grew increasingly concerned that the United States and Iran could return to an all-out war and threaten passage through the Strait of Hormuz. Global benchmark Brent crude oil rose about 4.6% to settle near $88, its largest weekly increase since April. Axios reported that the United States is sending dozens of tanker planes to Israel, strengthening market expectations that the conflict may escalate in the near future; affected by this, oil prices rose further on Friday. This development further enhanced the bullish momentum for oil prices after Iran attacked Kuwait's water and power plants, causing damage to multiple generating units. "No one dares to take a short position this weekend," said Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets. Crude oil prices have soared to near a one-month high, partially recovering from a roughly 30% drop in the second quarter, as the escalation reignited concerns about passage through the Strait of Hormuz. Before the war, about one-fifth of the world's oil was transported through the Strait of Hormuz, a chokepoint. The conflict has also affected supplies of fuels such as diesel and gasoline, pushing U.S. refiner profit margins to record highs. Canada's largest oil refinery is scheduled to shut down for maintenance in the fall, potentially exacerbating fuel market tensions in parts of the United States that rely on the plant's fuel imports. Meanwhile, Russian crude oil exports fell sharply after Ukraine attacked Russian refineries and prompted Moscow to ban diesel exports. U.S. lawmakers also sought to increase pressure, with senators unveiling the text of a bill to sanction Russian oil buyers. "Compared to crude oil, the refined oil market is more tight in supply," said Simon Lack, portfolio manager of Catalyst Energy Infrastructure Fund. "During the previous brief ceasefire, energy company executives warned that inventories continued to decline and that the entire system had almost no buffer space." Meanwhile, Iran continues to attack its Gulf neighbors and launch naval attacks on ships passing through the Strait of Hormuz, insisting that all ships must obtain its permission before passing through the strait. Rising tensions are making shipping companies more cautious, with traffic in the strait having fallen sharply over the past 10 days. While trackable traffic in the Strait of Hormuz has reduced, some voyages appear to be continuing, with a small number of tankers conducting ship-to-ship transfers off the coast of Oman. Brent September futures rose 4.6% to close at $88.10 a barrel; WTI August futures rose 4.5% to settle at $82.49 a barrel. Open a futures account on Sina's cooperative platform, safe, fast and guaranteed