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Oil prices rise on suspected tanker attack in Gulf of Oman

While tensions between Iran and the US are escalating, Boris Johnson is one step closer to moving into Number 10.

Oil prices rise on suspected tanker attack in Gulf of Oman

Oil prices rose by as much as 4.5 per cent yesterday, 13 June after two tankers were struck in the Gulf of Oman, fuelling fears the industry could be caught up in escalating tensions between Iran and the US.

Iran has previously threatened to block the key oil artery in the Strait of Hormuz that one-fifth of the world’s supply travels through. Taiwan’s state oil refiner CPC Corporation said one of the tankers was “suspected of being hit by a torpedo”. The latest incident comes shortly after two Saudi Arabian tankers were sabotaged in the same area.

Brent crude rallied close to $63 a barrel, reversing the recent plunge in prices due to slowdown fears stemming from the US-Chinese trade war.

In the UK, Boris Johnson’s supporters called on his rivals to step down from the Conservative Party leadership election to speed up the process. Johnson received the backing of 114 peers in the first voting round, overtaking his nearest rival Jeremy Hunt by 71 votes. The next round is due next Tuesday, 18 June and it is likely that some of the rivals will step aside before then to allow the final two to be chosen ahead of time.

Today is pretty light on data releases. Bank of England Governor Mark Carney will give a speech at lunchtime, however, with the Monetary Policy Committee due to meet next week, Carney is unlikely to give away too many clues on the future path of its monetary policy and interest rates.

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