Oil and Gas Prices Rise After Tanker Strike in Strait of Hormuz
Oil and gas prices moved higher after a tanker was hit by an unknown projectile in the Strait of Hormuz, renewing concerns over energy security and the fragility of US-Iran peace talks.
Oil and gas prices moved higher after a tanker was hit by an unknown projectile in the Strait of Hormuz, renewing concerns over energy security and the fragility of US-Iran peace talks. Dutch TTF, Europe’s benchmark gas contract, rose as much as 6% following the incident, while Brent crude climbed 1. 4% to around $73 a barrel. The UK Maritime Trade Operations said the strike caused a fire on a vessel off the coast of Oman and advised ships transiting the area to proceed with caution and report any suspicious activity. Iranian state television said the incident occurred after a liquefied natural gas tanker ignored warnings, although Iran did not directly claim responsibility. The Wall Street Journal reported that Iran’s Islamic Revolutionary Guard Corps had fired at two commercial ships. The incident comes as US President Donald Trump prepares to meet European leaders at a Nato summit in Turkey, where security in the Strait of Hormuz is expected to be discussed. The Strait remains one of the world’s most important energy transit routes, with around a fifth of global oil and gas exports passing through the waterway in peacetime. Oil and gas prices surged earlier during the Iran conflict as traffic through the Strait was disrupted. Negotiations between Washington and Tehran had helped shipping resume, although flows remain below pre-war levels. Trump said on Monday that the US would either reach a deal with Iran or “finish the job”, renewing the prospect of military action if talks fail. Iranian foreign minister Abbas Araghchi responded by saying discussions on a final agreement would not begin while US threats continued. The renewed energy market volatility comes as Shell said it expects “significantly higher” gas trading profits, benefiting from market disruption caused by the Iran war. The FTSE 100 energy major also reported strong profits from its oil trading arm, supported by elevated crude prices. Brent crude reached $126 a barrel at the height of the Middle East conflict. Shell’s natural gas production was affected by lower output in Qatar, which accounts for around 10% of the company’s global oil and gas volumes. Its Pearl GTL site in Qatar stopped production in March after being struck during attacks, while LNG facilities in the country were also affected. Shell said trading results in its chemicals and products division, which includes oil trading, are expected to be broadly in line with the previous quarter. If anyone reads this article found it useful, helpful? Then please subscribewww. share-talk. comor followSHARE TALKon our Twitter page for future updates. Terms of Website UseAll information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned