Oil Prices Rise in Reaction to Saudi, U.S. Strikes Against Iran
Oil prices rebounded Wednesday after joint US-Saudi military strikes against Iran-aligned groups in Iraq renewed concerns over potential disruptions to Middle East energy supplies.
International benchmark Brent crude futures for October traded at $84.64 per barrel, up 3.12% from the previous close of $82.08.
US benchmark West Texas Intermediate (WTI) futures for September increased 3.57% to $82.09 per barrel, compared with $79.26 in the previous session.
The US military’s Central Command (CENTCOM) said Tuesday that US and Saudi forces carried out joint precision strikes against Iranian-aligned groups and their sites in Iraq.
“U.S. Central Command and the Saudi Arabian Armed Forces conducted precision strikes in Iraq, July 28, against Iran-aligned terrorists that the Islamic Revolutionary Guard Corps (IRGC) directed to attack U.S. forces and Saudi energy infrastructure,” CENTCOM said in a statement.
US and Saudi fighter jets targeted multiple logistics and weapons facilities in eastern Iraq, responding to more than 30 drone attacks directed by Iran’s Islamic Revolutionary Guard Corps (IRGC) over the previous 72 hours, the statement said.
“The unwarranted attacks against U.S. forces were not successful,” the command said.
Separately, the Saudi Defense Ministry said early Wednesday that joint strikes against targets belonging to Iran-aligned groups in Iraq were carried out in response to attacks launched from Iraqi territory on petroleum facilities in the kingdom.
Adding to supply concerns, Iran’s deputy foreign minister said Tuesday that Tehran’s final proposal to Oman on reopening the Strait of Hormuz requires one shipping lane and part of a second lane to remain entirely under Iranian control.
Speaking on Iranian state television, Kazem Gharibabadi said Oman had proposed a temporary shipping route that would replace the current northern and southern routes through the strait.
He said the Omani proposal envisioned a route with half under Iran’s control and half under Oman’s control, but Tehran rejected the formula.
Brent, which climbed last week on fears of shipping disruptions through the Strait of Hormuz and Bab el-Mandeb and possible attacks on energy infrastructure across the Middle East, fell as low as $80.67 a barrel Tuesday after the US and Iran paused their exchange of attacks.
On the demand side, the American Petroleum Institute said US crude oil inventories increased by 3.29 million barrels last week, defying expectations for a 2.5 million-barrel draw.
Markets are now awaiting official US inventory data from the Energy Information Administration, due later Wednesday, for further indications of supply and demand trends in the world’s largest oil consumer. TotalEnergies Boosts Interim Dividends to €0.90, Extends Share Buyback
