US-Iran Tensions Escalate Around Strait of Hormuz; Brent Crude Opens at $78 on July 13

According to Chuangyuan Futures, over the weekend (July 11-12), US-Iran tensions escalated around the Strait of Hormuz with multiple military strikes and attacks on oil infrastructure. The US launched its third and fourth rounds of strikes against Iran on July 11-12, while Iran retaliated with attacks on US military bases across the Gulf region. A drilling platform operated by Kuwait Petroleum was hit by unmanned drones.

In response, Iran announced the closure of the Strait of Hormuz early on July 12, though the southern shipping lane remained partially open with significantly reduced traffic. Energy futures surged in early trading on July 13, with fuel oil up over 4 percent and SC crude up over 2 percent. Brent crude opened at $78 per barrel.