On July 14 (local time), according to Xinhua, world oil prices simultaneously increased sharply after US President Donald Trump announced that Washington re-imposed naval blockades on Iran in the Strait of Hormuz.
At the close of the trading session on July 14, WTI oil for August delivery increased by 6.73 USD, equivalent to 9.42%, to 78.14 USD/barrel on the New York Mercantile Exchange (NYMEX).
Meanwhile, Brent oil for September delivery increased by 7.29 USD, equivalent to 9.59%, to 83.30 USD/barrel on the ICE Futures London exchange.
To date, this is the strongest increase in world oil prices after the period when oil prices once set peaks in April and May this year.
On the social network Truth Social, Donald Trump announced that the US will restore naval blockade against Iran.
We re-impose a blockade on Iran, only preventing Iranian ships or customers of this country from entering and leaving," Mr. Trump wrote.
The above information immediately caused the energy market to react strongly when investors worried that oil transportation through the Strait of Hormuz would continue to be disrupted.
According to maritime data firm Kpler, only 14 ships passed through the Strait of Hormuz on July 13 - the lowest level in a month, reflecting a significant decrease in transport volume as military tensions between the US and Iran escalated.
Ms. Rania Gule, market analyst of the XS. com trading platform, said that this price increase is not simply a technical recovery.
The market is revaluing geopolitical risks to the energy industry. Investors are not only reacting to military developments but also to the risk of oil flow disruption," Gule said.
According to this expert, oil prices are likely to continue to remain high if tensions between the US and Iran do not cool down or a significant diplomatic breakthrough does not appear.
Mr. Vladimir Zernov, an expert at FX Empire analysis firm, also said that the oil market is facing the risk of supply shortages if the Strait of Hormuz continues to be blockaded.
He assessed that global oil reserves have significantly decreased after previous disruptions in Hormuz. If the US and Iran continue to confront and oil transportation through this maritime route is restricted, oil prices may quickly return to the peak levels set in April and May this year.
