Brent crude climbs past $110, highest since May
At least 18 ships have been hit on the Strait of Hormuz in the last two weeks, and oil prices have risen sharply this month as Middle East tensions intensified and peace talks cooled, according to United Press International. Among the latest incidents, Iran’s Revolutionary Guard Corps said Tuesday, were two oil tankers that it described as “non-compliant” hitting mines on the strait and catching fire.
Oil prices soared Tuesday as attacks on oil tankers on the Strait of Hormuz became more frequent, straining the global fuel supply, UPI reported. West Texas Intermediate, the U.S. benchmark for crude oil, eclipsed $105 a barrel Tuesday morning. Brent crude, the international benchmark, climbed over the $110 mark, the highest price since May.
The United States has paused attacks on Iran as President Donald Trump aims to boost the chances of Republican candidates in the Nov. 3 midterms, according to UPI. The news service reported that the war in Iran and its impact on fuel prices has been a challenging issue politically for the Republican Party.
Commodity analysts with the wholesale banking firm ING said Tuesday that the global market is “pricing in a significant risk premium” in oil prices due to the volatility of trade during the conflict. The global oil supply has been increasingly threatened in recent weeks by the Iran-backed Houthis taking control of Yemen’s Red Sea coast and striking Saudi Arabian targets, UPI reported. Houthi attacks have choked another key thoroughfare in the Middle East oil trade.