Crude rallies as US-Iran confrontation revives energy market jitters

Global oil prices moved higher on June 29 following a series of reciprocal strikes between the United States and Iran, reigniting concerns over the stability of energy shipments through the Strait of Hormuz.

As of 06:07 Baku time, Brent crude futures were up 58 cents, or 0.8%, at $72.57 per barrel. US West Texas Intermediate (WTI) crude rose 88 cents, or 1.3%, to $70.11 per barrel, Caliber.Az reports via Reuters.

The gains were driven by renewed tensions in the Middle East, which have cast doubt on the durability of an interim peace arrangement between Washington and Tehran and slowed the movement of energy supplies through the Strait of Hormuz.

Analysts at ING said the oil market continues to face significant risks, although traders remain focused on the recovery of supply volumes and their impact on the global balance between demand and production.

According to the bank’s experts, the market reaction appears overly subdued and leaves considerable room for further price increases, particularly if the restoration of supply flows is delayed.

Despite the latest gains, Brent crude fell 10.6% last week, marking its third consecutive weekly decline. The drop came as crude shipments through the Strait of Hormuz climbed to their highest level since late February.

By Jeyhun Aghazada