Oil prices rise to record level after Iran launches attacks on tankers near strait of Hormuz

Global oil prices had previously fallen from highs of more than $110 a barrel in late May after more tankers were able to transit the strait of Hormuz. Photograph: Guillaume Horcajuelo/EPA View image in fullscreen Global oil prices had previously fallen from highs of more than $110 a barrel in late May after more tankers were able to transit the strait of Hormuz. Photograph: Guillaume Horcajuelo/EPA Oil prices rise to record level after Iran launches attacks on tankers near strait of Hormuz Brent crude benchmark rose to more than $78 a barrel after attacks, its sharpest increase since ceasefire began Oil markets have recorded the sharpest price rise in nearly two months after a series of attacks on fossil fuel tankers near the strait of Hormuz led US president Donald Trump to declare the ceasefire deal with Iran is “over”. Brent, the global crude benchmark rose by 5% on Wednesday to more than $78 a barrel, the highest price since the US and Iran agreed the ceasefire while negotiating an end to the war last month. US and Iran trade strikes around strait of Hormuz as ceasefire is violated again Read more The fragile ceasefire appeared to disintegrate after Iran launched attacks on at least three tankers transiting the strait of Hormuz within 48 hours, including a vessel carrying about 8m cubic feet of liquified natural gas, which is considered the cargo most at risk of exploding. At least four oil and gas tankers have turned back from trying to transit the strait, according to ship-tracking data, which has hampered efforts to normalise flows of oil and gas through the vital trade route after months of disruption. . “Tanker traffic through the strait of Hormuz has essentially stopped, which tells you more about risk perception right now than any statement from Washington or Tehran,” said Jorge León, the head of geopolitical analysis at Rystad Energy. The “real test” will come after the burial ceremony of Iran’s supreme leader Ayatollah Ali Khamenei later this week, said León, once the US and Iran “show whether there is still an appetite for a diplomatic off-ramp”. Global oil prices have fallen from highs of more than $110 a barrel in late May as more tankers were able to transit the strait amid hopes the US-Iran talks would bring an end to the war which has disrupted flows of about 20m barrels of oil a day from Gulf producers. In Europe , the collapse of the ceasefire reignited a 5% surge in gas market prices. The benchmark Dutch contract increased by more than €2.40 to €49.00 per megawatt hour (MWh) while the UK equivalent rose by 6 pence to 116.75 pence per therm. The return of rising energy prices risks raising household costs which have faced the steepest rise in summer energy bills in four years . If sustained, the higher market costs could mean rising gas and electricity prices in the winter as well as higher prices at the pump. “This is news UK drivers didn’t want to hear ahead of the summer getaway later in the month. The ending of the cease