War within a war
USO•Tanker attacks in the Strait of Hormuz reached their highest level since the Iran war began, while Brent rose nearly 5% to above $105 a barrel on Thursday. Regional crude exports have returned to pre-war levels, and European diesel prices rose more than 10% to $197 a barrel this week.
1. Oil market tensions
Attacks on tankers passing through the Strait of Hormuz last week reached their highest level since the Iran war began. Brent rose nearly 5% to above $105 a barrel on Thursday as President Donald Trump said he was not interested in a deal with Tehran and reports said the US military was preparing for possible strikes against Iran. Crude exports from the region have returned to pre-war levels, easing global supply pressure as Gulf producers seek to rebuild revenues.
2. Diesel and oil stocks
The International Energy Agency agreed on Wednesday to accelerate oil-stock releases and prioritize diesel supplies under a plan launched in March to address record-high fuel prices. The initiative has had little impact so far, with benchmark European diesel prices rising more than 10% to $197 a barrel this week.
3. Other energy developments
The first liquefied natural gas train in QatarEnergy's North Field East expansion is expected to be ready to start operations in November. EU plans call for delaying methane rules for oil and gas imports by one year, while record US renewables output helped meet summer demand from data centers and air conditioners.
