Iran has warned that its campaign to throttle global energy markets could be expanded from the Strait of Hormuz to the vital Red Sea route if U.S. attacks continue, a threat that depends on its Houthi allies in Yemen. This is why it matters and what it means for the Iran war and the global energy crisis: HOW BIG IS THE RISK TO GLOBAL ENERGY MARKETS? Closure of the Bab el-Mandeb strait — gateway to the Red Sea — would open a new front in the energy crisis and Iran's overarching conflict [Read more]

Asian refiners snapped up U.S. crude cargoes overnight as they sought to secure alternative supplies amid escalating tensions in the Middle East, trade sources said on Wednesday. Two South Korean refiners purchased at least 5 million barrels of West Texas Intermediate (WTI) crude, the people said. The cargoes for loading in July and August were bought at premiums of about $11-$12 a barrel to the Dubai benchmark, they added. Thai refiner PTT bought about 1 million barrels of U.S. crude [Read more]

Renewed disruptions to Persian Gulf oil exports could keep upward pressure on prices in the near term, Goldman Sachs said in a note on Tuesday, adding that the next phase of recovery in flows remains uncertain and could be slower than the initial rebound even after geopolitical de-escalation. * Goldman estimates that Gulf exports recovered to more than 80% of pre-war levels after a U.S.-Iran MoU in June, but slipped back below 50%, or about 11 million barrels per day (bpd), over the last week [Read more]

Oil extended gains on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on U.S. infrastructure in the region. Brent futures climbed 99 cents, or 1.2%, to $85.72 a barrel at 0400 GMT. West Texas Intermediate futures gained 64 cents, or 0.8%, to $79.98 a barrel. Oil prices closed up 2% at a one-month high on Tuesday as attacks exacerbated a supply disruption in the Strait of Hormuz, through which about a fifth of the world's oil [Read more]

The Strait of Hormuz is part of Iran's national security and it will exercise its sovereignty over it what ever that costs, Iran's Deputy Foreign Minister Kazem Gharibabadi said in interview with state TV on Tuesday. Tehran currently has no commitments when it comes to the Islamabad MoU signed with the United States, he added. (Reporting by Elwely Elwelly, Yoman Ehab and Muhammad Al Gebaly) [Read more]

Iraq's Prime Minister Ali al-Zaidi said on Tuesday that Iraq needed a fair share within OPEC after he was asked by reporters whether he was considering leaving the oil producer group. Zaidi is on a trip to Washington as he aims to secure major U.S. investment in his country's oil, gas, and power sectors after the Iran war hammered crude output and state finances. "Iraq is one of the founding members of OPEC... Our right is to receive a fair share for Iraq," he told reporters at the White [Read more]

The price of Brent crude oil futures for prompt delivery rose on Tuesday to a one-month high over the price for oil six months later as traders priced in renewed risks to Middle Eastern supplies and shipping through the Strait of Hormuz. The first-month Brent contract traded $8.92 a barrel above the sixth-month contract, its largest premium since June 10. A market structure in which prompt contracts trade at a premium to later ones is known as backwardation and is typically viewed as a sign [Read more]