The international oil price climbed to its highest level in nearly four weeks on the 14th, following the US government's announcement of renewed maritime restrictions on Iran and plans to impose a 20% transit fee on vessels passing through the Strait of Hormuz. This development has triggered volatility in global energy markets and heightened geopolitical tensions.
As of early trading on the 14th, London Brent crude futures rose by 2.1% to $85.11 per barrel, while New York Mercantile Exchange West Texas Intermediate (WTI) crude futures increased by 2.3% to $79.91 per barrel. This follows a surge of 9.6% in the previous session for Brent, marking its largest single-day gain since May 2020. Consequently, international oil prices have fully recovered to their highest point since the US and Iran signed a memorandum of understanding aimed at ending conflict on June 17.
US President Trump announced on the 13th Eastern Time that Washington would reinstate a blockade on Iranian shipping in the Strait of Hormuz and plans to levy a 20% "protection fee" on all commercial vessels transiting the waterway. In an interview from the White House Oval Office, Trump stated that the US is dismantling the adversary's offensive capabilities and controlling the strait, with maritime blockade operations already resumed. US Central Command later confirmed that this blockade officially took effect at 4:00 PM Eastern Time on the 14th. Analysts note that this move fundamentally alters the long-standing US policy stance supporting freedom of navigation through the Strait of Hormuz.
Amid the renewed US-Iran confrontation, security conditions in the Gulf region have deteriorated sharply. The UAE Ministry of Defense reported that two UAE oil tankers were attacked by Iranian cruise missiles while passing through the southern channel of the Strait of Hormuz in Omani territorial waters, resulting in the death of an Indian crew member and injuries to eight others. Concurrently, US Central Command confirmed that US forces have conducted airstrikes on military targets within Iran for a third consecutive night. According to reports from the Iranian Young Journalists Club (YJC), multiple explosions were heard in the port city of Bandar Abbas and on Kish Island.
In a report issued on the 14th, Citibank warned that the US proposal to impose additional shipping fees substantially increases the risk of further military escalation. Iran may completely withdraw from the previously signed memorandum of understanding, making it highly probable that global oil prices will face a scenario of "remaining elevated for longer." Squeezed by both geopolitical risks and rising energy costs, the three major US stock indices collectively closed lower in trading on the 13th, with the Nasdaq Composite Index falling by 1.4%.
Comments