Hormuz ship attack reports pushed oil prices higher on Friday after Tasnim said Iran’s Revolutionary Guard targeted a ship that ignored a warning and tried to pass through Hormuz.
WTI rose $3.53 to $82.48, according to the report. The source article said the Middle East escalation showed no sign of slowing. It also cited reports from the prior day that Iran targeted Kuwait and hit a desalination plant.
Hormuz Ship Attack Drives Oil Higher
Tasnim, which the source described as Iran’s semi-official outlet, reported that the Revolutionary Guard struck the ship after it tried to move through Hormuz despite a warning. Meanwhile, the article said oil was having another big day as traders reacted to the latest developments.
The source also said the 3-2-1 crack spread moved above $70 per barrel. It described that level as the highest on record. As a result, the article said fuel prices could match or exceed levels seen at the peak of the war even with crude near $80.
Crack Spread Hits Record High
The source said the earlier May-to-July drop in crude prices may not reach companies or consumers. Instead, it said refineries could capture that benefit. However, the article added that the crack spread may be a bigger story than the move in oil itself.
Separately, the source mentioned reports that Israel possibly leading Lebanon could set the stage for a deal. It also cited a report that the United States was preparing to send more refuelling planes to Israel, pointing to further escalation.
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Source: InvestingLive
