Brent crude futures prices spike over Hormuz violence
Sydney (15 July)
Brent crude futures traded at $84.02/barrel on 14 July, up from $71.57/barrel on 1 July and $76.10/barrel on 10 July, because of rapidly escalating US and Iranian violence around the Strait of Hormuz.
The US military has launched a blockade on all ships transiting through Iran – following the collapse of the US-Iran Peace Deal – US Central Command (Centcom) said on 14 July. But it will help non-Iranian ships move through the now-closed Strait of Hormuz, Centcom added.
US forces blockaded Iran for two months in April-June to prevent the country from exporting crude oil and pressure it to fully reopen the Strait.
The US will sign trade and investment deals with Persian Gulf states in exchange for supporting ship movements through the Strait, US President Donald Trump said early on 15 July. A day earlier, Trump had proposed a 20% cargo levy on all ships passing through the Strait.
Iranian forces responded to Centcom’s blockade and recent bombing campaigns with missile attacks targeted at multiple Gulf states – including Qatar, Jordan, and Bahrain – and oil tankers near Oman.
They shot cruise missiles at two United Arab Emirates-linked (UAE) oil tankers within Omani waters, killing one sailor and injuring eight others, the UAE Ministry of Foreign Affairs said. The UAE has called on Iran to halt all ship attacks, commit to ending all hostilities, and unconditionally reopen the Strait of Hormuz, the Ministry added.
Australian fuel prices increased between 9 and 14 July, partly because of increased global crude oil prices. Diesel prices averaged A$1.96/litre across New South Wales (NSW) on 14 July, up from A$1.92/litre on 9 July, data from price monitor FuelCheck NSW show.
Average unleaded 91 octane petrol prices in NSW rose from A$1.72/litre to A$1.73/litre over the same period, FuelCheck NSW data show.
The Australian Government wants to see restraint and constructive engagement to prevent further escalation around the Strait of Hormuz, Minister for Emergency Management Kristy McBain said.
The Government may also take further steps to support motorists because of recent escalations. “We’ll monitor the [Hormuz] situation and see what else needs to be done [to help Australians,]” McBain said.
By Avinash Govind