Brent crude rose sharply, and hostilities between the US and Iran escalated over the weekend, including locking down ships trying to pass through the Strait of Hormuz and attacking a key oil facility in Kuwait. The global crude oil benchmark price rose more than 3% to around 91 US dollars per barrel, the highest level since mid-June. The price of WTI crude oil is close to 85 US dollars per barrel. Tehran said that the cease-fire between the US and Iran has actually broken down, and outsiders are worried that energy transportation through the Strait of Hormuz may be more seriously disrupted. The Iranian Navy said on Sunday that four unidentified ships trying to pass through an “unsafe channel” in the Strait of Hormuz were intercepted after ignoring warnings. The Navy pointed out that two of the ships “had accidents and were forced to stop moving” while the other two “abandoned their routes and turned back.” Over the past week, US and Iran's tit-for-tat attacks have expanded from pure military targets to infrastructure such as bridges, utilities, and ports, representing little hope of returning to the fragile cease-fire state. KOC said Iran attacked an oil facility on Saturday, causing heavy losses. Saul Kavonic, a senior energy analyst at MST Marquee, said that the escalated attack over the weekend “shows that there is still room for this conflict to expand in scale and prolong.”

Brent crude rose sharply, and hostilities between the US and Iran escalated over the weekend, including locking down ships trying to pass through the Strait of Hormuz and attacking a key oil facility in Kuwait. The global crude oil benchmark price rose more than 3% to around 91 US dollars per barrel, the highest level since mid-June. The price of WTI crude oil is close to 85 US dollars per barrel. Tehran said that the cease-fire between the US and Iran has actually broken down, and outsiders are worried that energy transportation through the Strait of Hormuz may be more seriously disrupted. The Iranian Navy said on Sunday that four unidentified ships trying to pass through an “unsafe channel” in the Strait of Hormuz were intercepted after ignoring warnings. The Navy pointed out that two of the ships “had accidents and were forced to stop moving” while the other two “abandoned their routes and turned back.” Over the past week, US and Iran's tit-for-tat attacks have expanded from pure military targets to infrastructure such as bridges, utilities, and ports, representing little hope of returning to the fragile cease-fire state. KOC said Iran attacked an oil facility on Saturday, causing heavy losses. Saul Kavonic, a senior energy analyst at MST Marquee, said that the escalated attack over the weekend “shows that there is still room for this conflict to expand in scale and prolong.”