Oil prices rose sharply in early Asian trading on Thursday after the United States launched military strikes on Iran’s strategic port of Chabahar, escalating tensions days after the collapse of an April ceasefire and renewing concerns about disruptions to global energy supplies.
As of 7:49 a.m. Tokyo time on Thursday, Brent crude, the international benchmark, was up 5.20% at $78.02 a barrel, while West Texas Intermediate (WTI) was up 1.41% at $74.56.
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Murban crude, Abu Dhabi’s main export grade widely used by Asian refiners, rose 6.67% to $73.57, outpacing gains in other benchmarks. US natural gas rose 0.25% to $3,220.
The rally followed overnight US strikes on military-linked targets in ChabaharIran’s only ocean port in the Gulf of Oman.
The attack marked the first US military operation in the area since an April ceasefire and widened the conflict beyond the Strait of Hormuz, a vital chokepoint through which roughly a fifth of the world’s oil supply passes.
Markets reacted to the possibility that Iran could retaliate by targeting regional energy infrastructure or trade shipping routes, even though Chabahar itself is outside the Strait of Hormuz.
Analysts said the broader concern is that any escalation of hostilities could spill over into shipping lanes linking the Persian Gulf to the Indian Ocean.
The stronger the profits in Murban gross reflected heightened concern among Asian buyers, as the benchmark is heavily traded by refiners in Japan, South Korea, China and other Asian economies.
Sharp rise for Murban
Murban’s sharp rise suggested traders were pricing in greater regional supply risks.
Despite the increase, prices remained well below the triple-digit levels reached during earlier stages of the conflict, indicating traders have yet to price in a prolonged export disruption.
Analysts said markets are closely watching whether Iran responds directly against US forces or attempts to interfere with maritime traffic.
Energy markets have been highly sensitive to developments in the Middle East since the conflict intensified earlier this year.
The breakdown of the April ceasefire has revived fears that renewed military exchanges could tighten global crude supplies, raise transport and insurance costs and add upward pressure to inflation around the world.
Investors are now awaiting further statements from Washington and Tehran, as well as any signs of a disruption in tanker traffic or oil production that could determine whether Thursday’s rise develops into a broader energy price shock.
