Oil prices surge three per cent amid escalating US-Iran tensions
Washington, July 13
Oil prices rose more than 3 per cent as the United States and Iran exchanged fresh strikes, renewing fears of disruption in the Strait of Hormuz, a critical route for global energy supplies.
US crude futures climbed 3.4 per cent to $73.87 a barrel by 6.03 p.m. ET, CNBC reported. Brent crude, the international benchmark, gained 3.5 per cent to $78.67.
The New York Times put Brent slightly higher at nearly $79 a barrel. That was about 9 per cent above its pre-war price.
The gains followed another round of US strikes against Iran. The attacks were intended to reduce Tehran's ability to target civilian mariners and commercial ships in the strait.
"At 5 p.m. ET today, U.S. Central Command forces began launching more strikes against Iran to continue degrading their ability to attack civilian mariners and commercial ships freely transiting the Strait of Hormuz," CENTCOM said.
"The Commander in Chief has directed the strikes to hold Iranian forces accountable," it added.
The Wall Street Journal said the operation was the third wave of American attacks in 24 hours. Earlier strikes targeted Iranian missile and air-defence systems, small boats, radars and weapons storage sites around the waterway.
Iranian forces fired at commercial ships around the time of the latest US operation. American aircraft shot down an Iranian cruise missile and a one-way attack drone, CENTCOM spokesman Capt. Tim Hawkins said, according to CNN and The New York Times.
Iran said the strait was closed until further notice. CENTCOM disputed the claim and said ships could continue to transit lawfully.
"Iran does not control the strait. Traffic is flowing," CENTCOM said, according to CNBC.
The maritime intelligence firm Windward tracked nine ships passing through the strait on Saturday. The Joint Maritime Information Center said the southern route through Omani waters remained open to inbound and outbound traffic. It nevertheless advised mariners to exercise "extreme vigilance".
Shipping volumes remain sharply below normal. More than 130 vessels used the strait each day before the war, but only 22 made the passage on Thursday, The New York Times reported, citing maritime data company Kpler.
"That confidence eroded very, very quickly," Kpler's head of Middle East research, Amena Bakr, told the newspaper. "We're back to square one when it comes to that situation."
Fox News reported that the US had hit about 140 Iranian targets in its overnight assault. Iran retaliated against sites across the Gulf. Kuwait said attacks damaged three border posts and an offshore oil platform, injuring one worker.
— IANS
Reader Comments
This escalation is terrifying. The US and Iran are playing a very dangerous game that will hurt ordinary people everywhere. India imports more than 80% of its oil, and this conflict could devastate our economy. I just hope diplomacy prevails before things get even worse.
Yaar, every time Middle East tensions rise, we feel it in our pockets. Petrol prices are already touching ₹100 in some states. Instead of fighting wars, these countries should focus on solving things peacefully. Meanwhile, India should fast-track electric vehicles and invest in Chabahar port to reduce dependency on Strait of Hormuz. Common sense hi nahi hai kisi ko? 🤷♂️
Interesting how the US claims they're protecting freedom of navigation while firing missiles left and right. Iran is no saint either, but this whole situation feels like a manufactured crisis. India should stay neutral and keep its options open. We need oil from both sides, so let's not take sides unnecessarily.
Just 22 ships crossing compared to 130 per day before the war! That's a 83% drop. Our import-dependent economy is going to suffer big time. I hope the government has a Plan B because this isn't going to end soon. Time to diversify our energy sources, no more putting all eggs in one basket.
I understand the US position on protecting shipping, but these strikes seem disproportionate. 140 targets hit in one night? That's not "degrading" capability, that's full-scale war. And Iran shutting the strait would be catastrophic for global economy. Both sides need to
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