Oil extends rally as Trump reimposes Iranian port blockade

Oil prices rose further on July 15 as U.S. President Donald Trump reimposed a naval blockade on all Iranian ports and hostilities between Washington and Tehran intensified, raising concerns over potential disruptions to global energy supplies.

Brent crude futures climbed 99 cents, or 1.2%, to $85.72 a barrel by 0400 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 64 cents, or 0.8%, to $79.98 a barrel, Reuters reports. 

The gains followed a 2% rise on July 14, when both benchmarks closed at their highest levels in a month as attacks worsened supply disruptions in the Strait of Hormuz, through which about one-fifth of the world's oil and liquefied natural gas had passed before the U.S.-Israeli war with Iran began.

The U.S. military said it launched a new round of strikes early on July 15 "to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz."

Tehran has said it has once again closed the strategic waterway after hostilities with the United States reignited last week, undermining a fragile truce reached in June following months of fighting.

Analysts warned that while the physical oil market remains adequately supplied, further escalation could significantly increase supply risks.

"While the physical oil market remains adequately supplied, any further escalation involving the Strait of Hormuz or additional sanctions on Iranian exports could quickly tighten market sentiment and add further risk premiums," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

By Sabina Mammadli