Brent jumps above $78 as US-Iran fighting hits Hormuz traffic
Why it matters: About a fifth of global oil usually moves through the strait, and vessel traffic reportedly fell to 11 before halting.
Oil prices climbed to multiweek highs after fighting between the United States and Iran resumed, raising fears of a deeper disruption to tanker traffic through the Strait of Hormuz. Brent crude settled up 5.2% at $78.02 a barrel on Wednesday, its highest since June 19, while US West Texas Intermediate rose 4.4% to $73.52, the highest since June 22. Analysts at RBC Capital Markets said the latest flare-up likely capped the number of ships willing to transit the waterway. Rystad Energy's Jorge Leon said vessel movements dropped from about 20 on July 6 to 11 the next day, and traffic appeared to stop on Wednesday. Trump later signaled he was not restarting full-scale war, trimming oil's intraday gains.