Oil News: Crude Oil Futures Surge as CENTCOM Strikes Reshape Bullish Outlook
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Key Points:
- Brent pushed above $94 after a tanker took projectile fire, showing crude traders will not fade the shipping threat.
- WTI surged 4.5% to a July high as new U.S. strikes on Iran rebuilt the Hormuz supply risk premium.
- Oil sellers need safer tanker traffic and a real diplomatic pause before they can challenge the new war premium.
The United States struck Iranian military targets twice in three days. A tanker took three projectiles leaving the Strait of Hormuz on Monday. CENTCOM confirmed a new round of strikes against IRGC positions Tuesday without saying how many targets were hit or where they were located. The conflict that traders were starting to fade last week is no longer something the crude market can fade. The Strait is taking fire and the shipping route that carries one-fifth of the world’s oil is still running at a fraction of normal traffic.