Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Brent oil price surges after attack on two tankers in the Gulf of Oman

Oil prices rallied on Thursday morning after unconfirmed reports of an attack on tankers near the Iranian coast was announced.

Video poster image

Two oil tankers off the Iranian coast were reportedly attacked on Thursday morning, sending oil prices more than 4% higher.

Brent oil prices increased as much as 4.5% shortly after news of the attack broke, before retreating down again. Brent crude sits at $62.10 a barrel, while US Western Texas Intermediate (WTI) hit $52.68, up more than 1.5% as of 11:15 GMT on Thursday.

Attack on tankers fuels fears of further conflict in the Middle-East

The US Navy, which has a base in Bahrain, was quick to respond, sending ships to the scene and assisting the evacuation of the two tankers crew.

According to Iran’s Ports and Maritime Organisation’s website, 44 foreign crew members have been taken to Iran.

The attack comes as tensions between the US and Iran run high, driven by the imposition of an oil embargo on the Islamic Republic by US President Donald Trump.

Trump has imposed sanctions on Iranian oil exports in an effort to support its allies in the Middle East like the UAE and Saudi Arabia who wish to stop Iran gaining further influence in the region.

Japanese Prime Minister Shinzo Abe is visiting Iran in the hope of reducing tensions between the two countries, with onlookers hoping that Tokyo can open up talks with officials in Tehran and Washington.

The Kokuka Courageous, one of the oil tankers that was attacked and belongs to Tokyo-based Kokuka Sangyo, was reportedly hit by two shells.

'The first shell hit to the rear of the ship on the port side. A fire in the engine room was extinguished with carbon dioxide,’ a Kokuka Sangyo official said at a press conference. ‘The second shell then hit port amidships and the captain decided to evacuate.’

Technical Analysis

The pathway for Brent crude has been a relatively consistent one over the past month, with price breaking into a five-month low. Those declines came off the back of a bearish reversal signal in late-May, with price failing to sustain the creation of higher lows and highs.

Now we are seeing the potential for an opposing move, with the inability to break through the $59.23 support level providing a tentative signal that we could be in for some period of upside. However, this is just the first part to that potential bullish story, with a break through the $63.49 swing high required to negate the recent downtrend.

Brent price
Brent price

However, on an intraday basis, we can see that the initial surge seems to be easing back as momentum fails to follow through. The slowing stochastic oscillator appears to be closing in on a bearish cross as it approaches the overbought zone.

Given the recent rally into trendline resistance, the ability to remain below the $62.22 peak from this morning is key to maintaining a short-term bearish view. The wider downtrend remains intact as long as we remain the $63.54 peak, and while there is a distinct possibility that we could see another escalation to the situation, that uptrend is expected to resume for now.

Brent price
Brent price

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.