03 July 2012 14:41 [Source: ICIS news]
LONDON (ICIS)--The front-month August ICE Brent crude oil futures contract gained more than $3.00/bbl on Tuesday, exceeding $100.00/bbl on the back of increased tension between Iran and the west.
By 13:00 GMT, the front-month August Brent contract had touched an intra-day high at $100.73/bbl, a gain of $3.39/bbl from Monday’s settlement. Shortly after, it retreated to trade around $100.65/bbl.
At the same time, the front-month August NYMEX WTI contract was trading around $86.55/bbl, having touched an intra-day high at $86.68/bbl, a gain of $2.93/bbl from the last close.
On Monday, Iran drafted a bill calling for a blockade of the Strait of Hormuz shipping lane to prevent crude oil deliveries to countries which are supporting sanctions against the Islamic republic.
Iran said on Tuesday that its Revolutionary Guard had successfully test-fired ballistic missiles with a range of up to 2,000km (1,243 miles).
The US military has substantially increased its presence around the Middle East, according to reports, in case Iran makes attempts to block the shipping lane, which is used by a number of oil producing countries including Saudi Arabia, the world’s second largest producer of crude oil.
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