Oil hits four-week high as US-Iran conflict escalates
XLE•Oil prices rise to four-week high
July 14 (Reuters) - Oil prices rose on Tuesday to their highest in four weeks, as the U.S. reimposed a naval blockade of Iran and renewed attacks between Washington and Tehran heightened concerns over energy flows through the Strait of Hormuz.
Brent crude futures LCOc1 were up $2.74, or 3.29%, at $86.04 per barrel at 0751 GMT, while U.S. West Texas Intermediate crude CLc1 rose $2.21, or 2.83%, to $80.35 a barrel.
Brent crude rose to its highest since June 12 and WTI to its highest since June 16. The United States and Iran signed a memorandum of understanding to end the conflict on June 17.
"Despite signing the memorandum of understanding and having a deal, this did not last for even a few weeks. So that's the concern the market is trying to price right now," said ANZ analyst Soni Kumari.
"What we think is that the peak of the escalation is behind us, but there are upside risks to oil prices if these disruptions continue and that will keep prices in the $85-$90 range."
