Oil reaches four-week high as Brent hits $86

• Brent crude climbed 3.29% to US$86.04, while WTI rose 2.83% to US$80.35 per barrel.
• Tanker traffic through the Strait of Hormuz fell to a two-month low as U.S.-Iran hostilities intensified.
• Analysts said continued shipping disruptions could keep oil prices elevated, although the outlook remains uncertain.

Brent crude rose US$2.74, or 3.29%, to US$86.04, while West Texas Intermediate crude gained US$2.21, or 2.83%, to US$80.35 as renewed U.S.-Iran attacks threatened Strait of Hormuz energy flows.

Brent reached its highest level since June 12 and WTI its highest since June 16, reversing part of the decline that followed the June 17 U.S.-Iran memorandum.

The United States reinstated its blockade and proposed a 20% cargo-security fee, while two UAE tankers were struck by Iranian missiles, killing one crew member and injuring eight others.

Following the escalation, the Brent crude price was up 3.29% at US$86.04 and the West Texas Intermediate crude price was up 2.83% at US$80.35 at 0751 GMT.

The Strait of Hormuz carried about 20% of global petroleum liquids and roughly one-fifth of worldwide liquefied natural gas trade before the conflict disrupted shipping.

Meanwhile, China’s June crude imports fell 41.3% to 7.12 million barrels daily, their lowest level since October 2016, as weak demand and export restrictions reduced refinery activity.