Oil rises with Iran’s seizure of British oil tanker

Oil rises with Iran’s seizure of British oil tanker



Oil prices climbed up at the start of the week with escalated tensions in the Strait of Hormuz.

International benchmark Brent crude was trading at $63.43 per barrel at 0651 GMT on Monday with a 1.27% gain after it ended Friday at $62.62 a barrel.

American benchmark West Texas Intermediate was at $56.21 a barrel on Monday at the same time for a 0.80% rise after closing the previous session at $55.76 per barrel.

Iran’s Islamic Revolutionary Guards Corps (IRGC) said Friday it confiscated a British oil tanker in the Strait of Hormuz.

“The British oil tanker Stena Impero was stopped by the IRGC’s First Division of Navy for not falling in line with maritime rules,” the Iranian forces said in a statement.

It follows Britain’s July 4 seizure of an Iranian-flagged oil tanker off Gibraltar.

To further add to supply constraints, Libya’s El-Sharara oilfield was shut down due to suspected valve closure, the National Oil Corporation (NOC) confirmed on Saturday.

The El-Sharara oilfield produces more than 300,000 barrels of crude oil per day, forming roughly one third of the oil-rich country’s production.


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