Oil prices spike in trading after US strikes on Iran
Oil prices have surged in early trade today amid concerns of disruption to energy markets after US air strikes on Iran’s nuclear sites.
As trading opened, Brent and the main US crude contract WTI both jumped by more than 4 percent to hit their highest price since January, according to the AFP news agency. They pared these gains, however, and at about 00:30 GMT, Brent was up 2.2 percent at $79.20 per barrel, and the WTI was 2.1 percent higher at $75.98.
Economists at the Japanese MUFG financial group told the AFP that the “high uncertainty of the outcomes and duration of this war” could pave the way for a possible oil price increase of $10 per barrel.
Iran is the world’s ninth-biggest oil-producing country, with an output of about 3.3 million barrels per day. It exports just under half of that amount and keeps the rest for domestic consumption.
South Korea warns of financial volatility amid Middle East tensions
South Korean acting Finance Minister Lee Hyoung-il has warned of heightened volatility in global financial and energy markets amid the escalating tensions in the Middle East, according to the official Yonhap news agency.
Lee made the remarks while presiding over a meeting on macroeconomic trends and risks, citing growing uncertainty after the US military involvement in Israel’s military operation against Iran.
Iran holds the second-largest gas reserves globally and is OPEC’s third-largest crude producer. “Global oil prices have already opened 2 to 3 percent higher today, signalling increased volatility in international energy markets,” Lee noted.
Lee said the government must be on high alert and closely monitor international energy prices and supply-demand dynamics, while stressing the importance of a quick and coordinated response, Yonhap reported.
South Korea is the world’s 13th-largest economy and the fourth in Asia in terms of gross domestic product (GDP).
Two supertankers make U-turn in Strait of Hormuz after US strikes on Iran: Report
The Coswisdom Lake and South Loyalty, which are both capable of hauling about 2 million barrels of crude, have turned around in the Strait of Hormuz after US air strikes on Iran raised the risk of conflict in the region, according to Bloomberg.
The two empty freighters had entered the waterway on Sunday and then “abruptly changed course”, the report said, citing tracking data.
“The turning oil carriers offer the first signs of re-routing,” Bloomberg reported, and the move comes as “vessel owners and traders are closely watching for signs that the escalation in the Middle East will affect movements and flows”.
Iran has previously threatened to close the Strait of Hormuz, which is the only marine entry into the Gulf. According to the US Energy Information Administration, about 20 percent of global oil consumption flows through the Strait, which the agency describes as the “world’s most important oil transit chokepoint”.
Three tankers reroute away from Strait of Hormuz: Tracking data
Three oil and chemical tankers have steered away from the Strait of Hormuz, data from the Marine Traffic platform shows, as concerns mount over potential Iranian retaliation to US attacks on its nuclear sites.
The Marshall Islands-flagged Marie C and Panama-flagged Red Ruby tankers dropped their anchors near Fujairah off the United Arab Emirates coast after having sailed towards the strait, the tracking data showed.
The UK-flagged Kohzan Maru, meanwhile, veered close to Omani waters in the Gulf of Oman, according to the data.
Iran’s parliament has reportedly backed a measure to close off the Strait of Hormuz, but such a decision ultimately rests with Iran’s Supreme National Security Council.
Oil majors evacuate some foreign staff from Iraq
Eni, BP and Total Energies operating in Iraqi oilfields have evacuated a number of their foreign personnel, Iraq’s state-run Basra Oil Company says in a statement.
However, oil operations in Iraq’s southern oilfields have not been affected, with exports averaging 3.32m barrels per day, two oil officials told Reuters.
