Oil exceeds US$97 as attacks between US and Iran escalate in the Strait of Hormuz

Oil surpasses US$97 this Monday (7), amid new attacks by the US and Iran against oil tankers and a crude refinery.

At around 9 am, a barrel of Brent, the global oil benchmark, rose 1.28%, to US$97.49. At its highest, it reached US$97.94, an increase of 1.78% and the highest level in almost seven weeks. At the same time, WTI, a reference in the USA, also rose. The increase was 0.99%, at US$92.37.

The increase reflects investors' increased concern about the military escalation between the US and Iran over the weekend and this Monday morning (7). With the new clashes, fears of interruptions in the global flow of oil are growing, which puts pressure on prices.

This morning, the facilities of the Saudi state-owned company Saudi Aramco in Jizan were hit again. In early August, the Houthis, Tehran's allies in Yemen, had already attacked the company's refinery.

According to one of the people familiar with the episode, this Monday's attack had similar proportions to what happened last month. Saudi Aramco did not respond to a request for information, and the Houthis have not yet claimed the new attack on Saudi Arabia.

The Jizan refinery has the capacity to process 400,000 barrels of oil per day and is among the largest in the country.

On Saturday (5), US forces attacked three Iranian oil tankers on Saturday, US Central Command reported.

One of them was near Kharg Island, Iran's main oil export hub. The attacks occurred after actions by Iran's Islamic Revolutionary Guard Corps against American warships in the region.

In retaliation, the Revolutionary Guard Navy claimed, on the same day, to have attacked three oil tankers that were sailing through unauthorized routes in the strait, as well as three other American vessels in different areas.

The three Iranian tankers were Downy, Stark I and Kylo, ​​also known as Noxen, maritime intelligence firm Marisks said in a statement.

The intensification of the conflict also affects traffic through the Strait of Hormuz. According to data from analysis company Kpler, an average of ten cargo ships per day have transited through the passage in the last ten days, the lowest level since May.

The ten-day moving average stood at ten vessels on Sunday (6), below the more than 15 registered on Friday (4) and almost 13 on Saturday (5).

Only two vessels crossed the strait on Saturday, while six crossed on Sunday, most via the Iranian route.

Saturday's attacks represented a "major escalation of the maritime conflict", Maersk said.

"Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping," he added.

For the shipping company, the risk is considered extreme for both Iranian or Iranian-linked vessels and US-linked vessels.

Since July 6, 27 incidents involving projectile impacts have caused damage to vessels in and around the Strait of Hormuz, according to UK Maritime Trade Operations (UKMTO).

On Sunday, a supertanker and three bulk carriers entered the strait. An oil tanker trying to leave the region had to turn back, while no supertanker has left the passage since Wednesday, according to data from Kpler and LSEG.