Oil prices jump 5%... Brent futures hit $87.3

Arabic - Oil prices rose today, Tuesday, to their highest level in four weeks as the United States reimposed its naval blockade on Iran and both sides escalated attacks in the Strait of Hormuz, increasing uncertainty about energy flows.

Tim Waterer, chief market analyst at KCM Trade, said: “It is clear that the recent escalation, including the reimposition of the U.S. blockade and Iranian responses, has introduced new risks to the market.”

He added, “Although there has been no complete shutdown, the conflicting objectives of both sides have significantly clouded the supply picture.”

A preliminary Reuters survey showed that U.S. crude oil inventories are expected to have fallen last week, while gasoline and petroleum product inventories are likely to have risen.

Meanwhile, China’s crude oil imports in June fell 41 percent year-on-year to 29.3 million tons, the lowest level since October 2016, and dropped 12 percent compared to May, weighed down by the Middle East conflict and weak demand.

Its natural gas imports rose 3.7 percent to 10.9 million tons, marking a five-month high, supported by increased seaborne shipments, declining domestic production, and falling inventories.

Coal imports also jumped 30 percent to 42.8 million tons, reaching a five-month high, after stricter safety measures at local mines and a decline in domestic supplies.