Oil prices hit a one-month high as the U.S. and Iran intensified their standoff over the Strait of Hormuz. West Texas Intermediate gained 3.8% to $81.09 a barrel while Brent climbed past $87, and President Trump said the U.S. would reimpose a naval blockade on Iranian ports.
Oil climbed to a one-month high on Tuesday as the U.S. and Iran intensified their standoff over the Strait of Hormuz, dashing hopes that traffic through the vital shipping lane could soon return to normal. The move followed a session in which both benchmarks surged nearly 10%.
Crude extends its rally
West Texas Intermediate, the U.S. oil gauge, gained 3.8% to $81.09 a barrel in afternoon European trading. Brent crude, the global benchmark, rose 4.9% to $87.39 a barrel, climbing past $87 for the first time in a month.
Trump moves to blockade Iranian ports
The escalation deepened after President Trump said the U.S. would reimpose a naval blockade on ships entering and leaving Iranian ports. U.S. Central Command forces were set to enforce the measure from 4 p.m. ET.
Macquarie Group's Thierry Wizman said the prospect that traffic through the strait will be completely blocked again from both sides remains a principal risk to global growth through its effect on supply constraints.
Inflation reading offers some relief
A cooler-than-expected inflation print softened the broader mood. Consumer prices were up 3.5% in June from a year earlier, slowing more than expected and improving from the 4.2% rate in May. That led investors to reduce bets that the Federal Reserve will raise rates at its meeting at the end of the month.
Even so, the crude rally reinforced the inflation concerns that the softer June reading had eased.
Source: MarketScreener
Trading involves risk.
Risk Disclaimer
