Crude Oil Prices Surpass $90 After Tanker Attacked in Strait of Hormuz

JAKARTA - Oil prices rose above $90 a barrel for the first time in more than a month as tensions between the United States and Iran escalated, resulting in the deaths of three US military members and an attack on a tanker.

As reported by CNN, Monday, July 20, Brent crude, the benchmark for global oil prices, had risen to its highest level since June 11 before eventually correcting slightly and trading around 1% higher at $88.24 per barrel. West Texas Intermediate (WTI), the benchmark for US oil prices, rose less than 1% to $82.26 per barrel.

According to Deutsche Bank, Brent prices jumped almost 16% last week - the largest weekly gain since April - while European benchmark natural gas prices hit their highest close since March.

Global energy prices continue to creep up after the US attack on Iran lasted for nine consecutive nights. According to British maritime authorities, the crew of the ship was forced to abandon the ship that was attacked on Monday near the Strait of Hormuz. The widespread attacks in recent days have exacerbated concerns about a wider war.

"The Memorandum of Understanding (MoU) in the Strait of Hormuz is practically no longer valid, and energy infrastructure in the Gulf region is now again the target of attacks, accompanied by all the market risks that come with it," wrote Neil Wilson, a strategist at investment bank Saxo.

"The current risks seem to be leaning more towards a scenario of high energy prices for a long time, as well as inflationary and interest rate pressures," he continued.