Global oil prices spiked Tuesday afternoon following the collapse of the US-Iran ceasefire and Washington's renewed threat to impose a naval blockade on Iran, according to i24NEWS. The development extends a prolonged period of volatile oil price swings tied to the US-Iran confrontation.
Global oil prices surged Tuesday afternoon after the collapse of the US-Iran ceasefire and Washington's renewed threat to impose a naval blockade on Iran, according to i24NEWS. The spike is the latest and sharpest move in a prolonged period of extreme oil price volatility tied to the US-Iran kinetic confrontation. The blockade threat materializes hours before the US naval siege is set to resume at 23:00 Jerusalem tonight, as announced Monday by the US Army.
On Monday, The Zioneer reported that the US Army declared the naval siege on Iran would resume at 23:00 Jerusalem time on Tuesday (version 15). CENTCOM later detailed enforcement statistics, stating the blockade would begin July 14 at 16:00 ET (23:00 Jerusalem) and restrict all maritime traffic to and from Iranian ports (version 14). The Times of Israel confirmed the enforcement timeline (version 13). Separately, The Zioneer reported that Iran had used the weeks since the previous siege was lifted to export tens of millions of barrels of oil, earning billions of dollars and freeing up storage capacity, making it more resilient to the renewed pressure (version 16). The escalation follows the collapse of the US-Iran ceasefire, which had been in place since earlier this month.
The oil price surge extends a volatile period that The Zioneer has been tracking. On Monday evening, oil prices jumped more than 8% amid worsening US-Iran conflict (context item, 21:17 Jerusalem). Earlier spikes included a 6% rise after US strikes on Iran's Bandar Abbas naval base (context item, July 8) and surges following Iran's declaration of Strait of Hormuz closure (context item, June 11). The Zioneer previously reported that the Strait of Hormuz handles roughly a fifth of global petroleum traffic.
What remains unverified: the exact percentage of the price spike and the current benchmark price as of the report. More detailed market data is expected later Tuesday.
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