Oil Jumps After Iranian Tanker Hit By Missiles

Brent Crude and WTI have both leapt two per cent following a report by Reuters that an Iranian tanker is ablaze in the Red Sea 60 miles from the Saudi port of Jeddah.

Iranian news agencies are reporting the tanker is ablaze and leaking oil into the Red Sea after being hit by two missiles. They are labelling it a “terrorist attack.

The obvious worry will be that this is a reprisal by Saudi Arabia following drone and missile attacks a few weeks ago on its own oil processing facility.  The truth, of course, maybe far more straightforward than that. The Iranian tanker may well have just had a mechanical mishap causing the explosion rather than the spin put by the Iranian media.

The former though would represent a very dangerous escalation in the Middle East tensions across the Straits of Hormuz and if so oil prices could be set for a strong up move. At this stage, we will have to wait for more details to emerge.

Brent Crude and WTI spot are one dollar higher at $60.15 and $54.35 a barrel respectively.

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Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific, from 2016 to August 2022
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley was OANDA’s Senior Market Analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV and Channel News Asia as well as in leading print publications such as The New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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