June 29, World (LNW): Global oil prices moved higher on Monday as renewed military exchanges involving the United States and Iran reignited fears over disruptions to energy supplies through the strategically vital Strait of Hormuz.
Brent crude futures rose by 52 cents to trade at $72.51 a barrel, while US West Texas Intermediate (WTI) crude gained 71 cents to reach $69.94 a barrel in early trading. The rebound followed a sharp decline last week, when Brent recorded its third consecutive weekly loss amid expectations that crude exports from the Gulf would recover.
Market sentiment shifted after fresh attacks on vessels operating in the Strait of Hormuz raised concerns over the security of one of the world’s busiest oil shipping routes. The latest incidents, including an attack involving a tanker linked to Qatar, were followed by retaliatory military action from both Washington and Tehran, marking the most serious escalation since the two countries reached an interim peace agreement earlier this year.
Energy analysts said investors are beginning to reassess assumptions that oil exports from the Persian Gulf would quickly return to normal levels. Although the interim agreement had initially eased concerns over supply, ongoing instability has highlighted the vulnerability of regional energy infrastructure and shipping lanes.
Despite the renewed tensions, reports suggest that the United States and Iran have agreed to suspend further military action and resume negotiations in Qatar over maritime security and the Strait of Hormuz. While the report has yet to be independently confirmed, hopes of renewed diplomacy helped limit stronger gains in oil prices.
Meanwhile, Saudi Arabia’s state-owned energy company Aramco has restarted crude loading operations at its Ras Tanura export terminal after a suspension lasting almost four months. The resumption comes as major Gulf producers increase oil and gas exports in an effort to restore market confidence, although analysts caution that logistical bottlenecks, damaged infrastructure and production constraints could delay a full recovery in supplies until later this year.
Separately, operations at the Ras Tanura terminal continued despite a helicopter crash involving an Aramco aircraft on Sunday that claimed the lives of 14 people. Saudi authorities have launched an investigation into the cause of the incident.