Brent jumps 3.9% to $87.5/bbl as Middle East conflict escalates

Brent crude, the European benchmark, rose 3.9% to $87.5 per barrel for September delivery as the conflict in the Middle East intensified. 

Brent traded at around $87.5 per barrel, its highest level since mid-June, while US benchmark WTI gained 4.13% to $82.2 per barrel.

Meanwhile, the European TTF natural gas benchmark rose 6.7%, approaching €59/MWh.

On the sixth consecutive day of attacks since the conflict resumed, Iran said it had struck and destroyed US military targets in Syria and Qatar in a new wave of operations, claiming to have destroyed a radar system and several aerial refuelling aircraft, and to have killed several US military personnel.

The United States launched a new wave of strikes against Iran after President Donald Trump declared the memorandum of understanding reached between the two sides in mid-June to be over, citing Iranian attacks on commercial vessels in the Strait of Hormuz.

The US also reimposed a naval blockade on Iranian ports and vessels after Tehran announced the renewed closure of the strategic waterway in response to the US strikes.

Iran has responded by launching missiles and drones at US targets across the Middle East, including in Bahrain, Qatar, Kuwait and the United Arab Emirates (UAE).