Brent jumps 5.3% after Hormuz attacks

President Donald Trump said on Wednesday, July 8, that the ceasefire with Iran was “over,” hours after U.S. officials said commercial ships had been attacked in the Strait of Hormuz and the U.S. military began a new round of strikes on Iranian targets. Brent crude rose 5.3% to $78.09 a barrel and U.S. West Texas Intermediate climbed 5.4% to $74.23 as traders reacted to the widening risk around one of the world’s most important oil routes. U.S. Central Command said the strikes were intended to degrade Iran’s ability to threaten commercial shipping and civilian mariners in the strait. The International Maritime Organization said attacks over the previous two days had put “innocent seafarers” in grave danger. ### Why did oil jump so fast after the latest attacks? Brent crude hit $78.09 a barrel and WTI reached $74.23 after Trump said the ceasefire was over and U.S. forces launched fresh strikes tied to the ship attacks. The Hindu, citing Reuters, reported the price moves as markets absorbed the risk that violence around Hormuz could disrupt energy flows. (nbcnews.com) The Strait of Hormuz carries about one-fifth of the world’s oil supply, according to NBC News, which described the waterway as a key route for crude and other commodities. That helps explain why even attacks on a small number of vessels can move oil prices quickly. (thehindu.com) ### What exactly happened in the Strait of Hormuz? NBC News reported that Iran hit three commercial ships in the Strait of Hormuz, prompting a second day of U.S. strikes. The Hindu, also citing Reuters, said U.S. forces launched strikes on July 7 after three commercial vessels were attacked, escalating a confrontation that had already disrupted efforts to end the war. (nbcnews.com) Arsenio Dominguez, secretary-general of the International Maritime Organization, said on July 8 that several ships transiting the strait had been attacked over the past two days. He called the assaults “reckless attacks” and said they had again placed innocent seafarers in grave danger. (nbcnews.com) ### Why does this matter beyond the ships that were hit? The International Maritime Organization said hundreds of ships with around 6,000 seafarers remained stranded in the Persian Gulf since the conflict began. That means the issue is not limited to the vessels that were struck; it also affects crews and operators waiting for safe passage. (imo.org) CBS News reported that European and Gulf officials were discussing how to preserve freedom of navigation in both the Strait of Hormuz and the Red Sea. Those talks followed attacks in Hormuz and came after two years in which Houthi attacks had already made the Red Sea a major shipping risk. (imo.org) ### How does Hormuz connect to the earlier Red Sea shipping crisis? The latest attacks widened maritime risk from the Red Sea to the Gulf at a moment when some shipping companies had only begun moving back toward Suez-linked routes. The broader concern for shipowners and energy traders is that two separate chokepoints are now under pressure at the same time. (cbsnews.com) NBC News reported last week that marine traffic was still moving through Hormuz despite earlier attacks, though only in a reduced flow. That suggested the route had remained open, but vulnerable, before this latest escalation. ### What are officials saying now? U.S. (cbsnews.com) Central Command said on Wednesday that fresh strikes were aimed at keeping the Strait of Hormuz open to traffic and degrading Iran’s ability to threaten freedom of navigation. CBS News reported that the U.S. then carried out a second night of strikes and Iran responded with attacks on U.S. bases in Bahrain, Kuwait and Qatar. (nbcnews.com) Dominguez said on July 8 that maximum restraint and de-escalation were needed. The next public markers are likely to come from military statements by U.S. Central Command, further IMO updates on ship safety, and oil prices when trading resumes. (imo.org) (thehindu.com)