Oil Prices Have Jumped 12% Since Friday as War Risks Return

Oil prices extended Monday's surge into Asian trade on Tuesday, with Brent Crude prices hitting a one-month high, as the renewed war risk premium crashed the calmer trade of the past weeks amid renewed U.S.-Iran hostilities and the reinstated U.S. blockade of Iranian oil exports. Oil prices are now 12% higher than they were on Friday. In Asian trade on Tuesday, both the Brent and WTI benchmarks were advancing by about 2% to their highest levels in weeks, as the market realized the recovery of traffic through the Strait of Hormuz wasn't going to go smoothly and was on a constantly rising trend from the levels in mid-June when the U.S. and Iran signed the memorandum of understanding to negotiate a deal. Brent Crude futures were approaching the $85 per barrel mark on Tuesday, while WTI Crude was attempting a breakout above $80 per barrel.