World News
Crude Futures Jump After Iranian Threats to Strait of Hormuz Ship Traffic
Crude futures have jumped on Monday morning after a weekend of dramatic headlines from Iran.
The US joined Israeli strikes on Iran on Saturday, sending bombers to target three nuclear facilities.
The impact of these strikes is as yet unclear, but the US joining the conflict is a significant escalation of tensions.
Iran's parliament reportedly voted to close the Strait of Hormuz on Sunday, while the country's foreign minister said it reserves all options to defend its sovereignty. But any final decision to attempt to close the strait would lie with Iran's national security council, and for now shipping traffic through the area looks largely unaffected.
The Strait of Hormuz is a key chokepoint for global oil markets, with about 20 million b/d of crude passing through it. But it remains unclear to what extent Iran could close it for a meaningful length of time, or to what extent it could cope with the likely impact on its own oil exports if it did so.
Crude futures jumped on Monday as a result of the weekend's news, but not in as dramatic a move as seen a week earlier after Israel's initial strikes on Iran.
ICE August Brent futures traded at $78.49/bl as of 5:00 AM in London, up from $77.01/bl at Friday's close.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 570.50 | 1.50 | 729.00 | 9.50 |
| Rotterdam | 527.50 | 1.00 | 742.00 | 14.00 |
| Houston | 555.00 | 6.00 | 767.00 | 9.50 |
| Fujairah | 559.00 | 0.50 | 787.00 | 3.50 |
| Global 20 Ports Average | 589.00 | 1.00 | 818.00 | 14.50 |
| Global 4 Ports Average | 553.00 | 1.00 | 756.00 | 9.00 |
| Global Average Bunker Price | 616.50 | 1.00 | 838.50 | 7.50 |
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