Oil rises after US launches fresh strikes against Iran

BEIJING: Oil prices rose on Thursday after the US launched fresh strikes against Iran, denting hopes ​for an end to the Iran war and for the full ‌reopening of the Strait of Hormuz, a chokepoint for one-fifth of pre-war global oil supplies.

Brent crude futures rose 78 cents, or 1% to $78.8 a barrel by 0054 GMT. ​U.S. West Texas Intermediate crude futures were up 74 cents, ​or 1.01%, at $74.26 a barrel.

Both crude benchmarks, WTI and Brent, ⁠rose more than a dollar in post-settlement trade on Wednesday after the U.S. ​military began launching fresh strikes on Iran.

Before that, the benchmarks had settled ​at their highest in over two weeks after U.S.President Donald Trumpthreatened fresh strikes against Iran as soon as Wednesday night.

The U.S. military said it was launching fresh ​strikes on Iran aimed at keeping the critical Strait of Hormuz open ​to traffic, hours after President Donald Trump declared that an interim agreement to end ‌the ⁠war was “over”.

The rush of oil that passed through the strait in recent weeks is over for now, with shipowners expected to take a more cautious stance, IG analyst Tony Sycamore said in a note.

The U.S. said ​its latest round of ​attacks was ⁠in response to Tuesday’s assault on three tankers transiting the strait. The U.S. attacks rattled several cities along Iran’s ​southern coast and left some areas without power.

Iran said ​on ⁠Wednesday it attacked U.S. military sites in Bahrain and Kuwait in response to earlier U.S. strikes on infrastructure.

Iran said ​on ⁠Wednesday it attacked U.S. military sites in Bahrain and Kuwait in response to earlier U.S. strikes on infrastructure.

Some war underwriters have advised shipping companies to pause ⁠voyages through ​the Strait of Hormuz, and others are ​reviewing their policy terms after Iran’s renewed vessel attacks, insurance industry sources said on Wednesday.