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Daily Petroleum

By: Bruno Santos, Market Intelligence Analyst

Banner Currencies

Reports of attacks on Kharg Island support oil prices

Yesterday (06), the most active Brent contract closed up 0.7%, quoted at USD 109.8/bbl. WTI futures followed the same path, ending the day at USD 112.4/bbl, up 0.3%.

Oil futures rose again after Tehran denied new talks with Washington, increasing fears of a new escalation of the war amid threats by Donald Trump of further attacks on Iranian energy infrastructure.

This morning (07), the Brent contract for June 2026 delivery is trading up 1.2%, quoted at USD 111.2/bbl as of 09:15. Reports of new airstrikes against Kharg Island in Iran are supporting oil prices, as the market prices in supply disruptions from the Persian Gulf country.

Iran continues to deny ceasefire talks with the U.S.

After rumors regarding the consideration of a peace proposal sent by intermediaries, Iranian sources denied the possibility of fully reopening the Strait of Hormuz unless the U.S. and Israel accept the terms defined by Tehran to end the war.

Why it matters: The lack of dialogue to consolidate a ceasefire heightens fears of a new escalation of the war, with investors pricing in the possibility of U.S. ground operations and attacks on Iran’s strategic energy assets — which helps keep prices at elevated levels.

  • This morning, news agencies confirmed new airstrikes on Kharg Island — a region responsible for 80% of Iran’s oil exports.
  • It is worth recalling that last Sunday (05), U.S. President Donald Trump set a deadline of 09:00 p.m. today — Brasília time — for Tehran to end the blockade of the Strait of Hormuz. Otherwise, Trump confirmed the possibility of massive attacks against Iranian territory.
  • In response, Tehran stated that any attack against the country would result in new offensives against other Persian Gulf countries that host U.S. military bases.

Overview: In recent days, the market has been observing Iran’s adoption of a new policy for passage through the Strait of Hormuz, applying “tolls” to vessels intending to cross the route that connects the Persian Gulf to the Indian Ocean.

  • Despite this, the country also confirmed that U.S. vessels or those of U.S. allies will not be allowed to cross the waterway, leaving shipping companies still wary of accessing the Gulf through the route.
  • The situation has been causing a significant disruption in the oil and refined products market. In Asia and Europe, airlines have reported shortages of jet fuel in some regions, with certain countries adopting consumption restriction policies to ensure full supply.
  • Meanwhile, the most active WTI contract — the U.S. benchmark — for May delivery continues to trade at very high levels, reflecting a sharp increase in Asian and European demand for U.S. barrels and higher risks to near-term commodity delivery.

What to expect: Investors are now waiting to see U.S. military movements, as the deadline set by Trump for reopening the Strait of Hormuz approaches.

  • A potential large-scale U.S. offensive could result in even sharper increases in oil prices, as the market anticipates rising production and logistical issues caused by a new escalation of the war.
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