International oil prices have surged to their highest level in four weeks as tensions between the United States and Iran escalate over shipping routes in the Strait of Hormuz. West Texas Intermediate (WTI) crude approached $80 per barrel, while Brent crude neared $85.
According to Bloomberg, as of 2:37 PM Korean time on July 14, Brent crude for September delivery rose by $0.92 (1.10%) to $84.22 per barrel. At the same time, WTI for August delivery traded at $79.08, up $0.94 (1.20%). WTI briefly surpassed $80 during the trading session but later retreated below that mark.
This increase in oil prices marks the highest level since the U.S. and Iran reached a preliminary agreement to end hostilities on June 17. The previous day, Brent crude had surged by 9.6%, closing at $83.30 per barrel, the largest single-day increase since May 2020. WTI also saw a 9.4% rise, finishing at $78.14.
The recent spike in oil prices is attributed to escalating airstrikes and retaliatory attacks between the U.S. and Iran over vessels transiting the Strait of Hormuz, raising concerns about potential disruptions to oil supply. The U.S. Central Command (CENTCOM) reported on July 13 that it had targeted multiple sites in Iran, including Bushehr, Chabahar, Jask, Konarak, Abu Musa, and Bandar Abbas. In response, the Iranian Revolutionary Guard Corps (IRGC) claimed to have attacked two UAE oil tankers passing through the Strait, alleging they were operating on an 'illegal route' under U.S. guidance.
Additionally, the U.S. military announced it would resume maritime blockades against Iran starting at 5 AM Korean time on July 15. President Donald Trump also stated that a fee equivalent to 20% of the cargo value would be imposed for ensuring the safety of vessels passing through the Strait.
The Strait of Hormuz is a critical maritime chokepoint, with approximately 20% of the world's energy supply passing through it. Market analysts warn that prolonged disruptions in the Strait could lead to further increases in international oil prices and inflationary pressures.
* This article has been translated by AI.
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