As the United States and Iran exchanged airstrikes in the Persian Gulf, concerns over a blockade of the Strait of Hormuz resurfaced, leading to a roughly 1% increase in international oil prices to start the week.
As of 8:03 a.m. KST on June 29, Brent crude futures rose 0.76% to $72.54 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 1.11% to $70.00 per barrel.
Previously, WTI for August delivery closed at $69.23 per barrel on June 26, marking a nearly 9% decline for the week. Brent crude, a global benchmark, also fell approximately 11% during the same period, closing at $71.99 per barrel. Both benchmarks had dropped about 20% earlier this month amid expectations that a peace agreement between the U.S. and Iran would normalize oil and gas flows in the Gulf region. However, renewed clashes have increased uncertainty.
Financial news outlet MarketWatch reported that the ongoing clashes over the Strait of Hormuz have raised fears that this critical oil transport route could effectively be blocked again. Over the weekend, Iran launched drone and missile attacks targeting U.S. military bases in Bahrain and Kuwait, warning of a potential halt to peace negotiations with the U.S. In response, U.S. forces struck Iranian missile, radar, and communication facilities following attacks on commercial vessels in the Strait.
The central issue in this conflict is the navigation of the Strait of Hormuz. Iran claims the need to control the flow of vessels passing through the strait, while the U.S. and its allies maintain that it is an international waterway where all ships should have the right to navigate freely.
Steven Innes, managing partner at SPI Asset Management, stated, "Even if the Strait of Hormuz is not officially closed, it can still pose problems. Increased navigation costs, slower transit times, and skyrocketing insurance rates may deter shipowners from sailing through the area." He added, "The immediate reaction of oil prices depends not just on military tensions but on whether actual physical disruptions occur."
Meanwhile, U.S. stock index futures are showing gains despite the clashes between the U.S. and Iran and rising oil prices. As of 8:23 a.m. KST, Dow Jones futures were up 0.28% at 50,013, S&P 500 futures rose 0.44% to 7,385.40, and Nasdaq 100 futures increased by 0.83% to 29,359.60.
* This article has been translated by AI.
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