SINGAPORE: Oil prices jumped on supply concerns after a series of attacks on ships in the Strait of Hormuz, along with a decline in U.S. oil production caused by hurricane activity moving toward the Gulf of America.
Front-month West Texas Intermediate (WTI) and Brent crude oil futures settled up 3.6% and 4.1%, respectively, Reuters reported.
According to The Associated Press, Brent crude rose to nearly $106 a barrel in the morning before President Donald Trump sent prices tumbling after saying “productive discussions” were taking place with Iran and that the U.S. would not attack the country before the midterms.
Trumps remarks sent Brent crude falling toward $103 a barrel before prices eventually rebounded. The United Kingdom Maritime Trade Operations Centre (UKMTO) said Thursday that a crude oil tanker has been struck while traveling through the Strait of Hormuz.
The incident, in which the tanker was hit by an “unknown projectile,” happened on Wednesday, according to the UKMTO.
“There have been no reported casualties. Damage assessment and environmental impact are unknown at time of report,” it added.
