The price of Brent crude, the world's main oil benchmark, passed $97 a barrel on Monday (7), its highest level in almost seven weeks, according to Folha de S.Paulo. For drivers, the bill usually arrives later: a more expensive barrel pushes up gasoline, diesel and airfares. The jump follows new attacks by the United States and Iran on oil tankers and a refinery in the Gulf region.
Around 9 a.m. Brasília time, Brent was up 1.28% at $97.49, after touching $97.94, its high of the day. WTI, the price benchmark used inside the United States, rose 0.99% to $92.37. Valor Econômico reported the same move, with Brent above $97 on supply risks in the Strait of Hormuz.
A barrel holds 159 liters, so $97.49 works out to about $0.61 per liter of crude alone. Refining, transport and taxes come on top of that. The price at the pump, in other words, starts higher before any station changes its signs.
Why the price rose
On Saturday (5), US forces attacked three Iranian tankers, according to the United States Central Command, the American military command for the Middle East. One of the ships was near Kharg Island, Iran's main oil export terminal. Folha identified the tankers as Downy, Stark I and Kylo, also known as Noxen.
The American strikes came after actions by the Islamic Revolutionary Guard Corps, Iran's military arm, against US warships in the region. In retaliation, the Guard's navy said the same day it had attacked three tankers sailing unauthorized routes in the strait, plus three other US vessels in different areas. On Monday morning, facilities of the Saudi state company Saudi Aramco in Jizan were hit again.
The Jizan refinery, one of Saudi Arabia's largest, processes 400,000 barrels a day. The Houthis, an Iran-aligned group in Yemen, had already attacked the plant in early August, and a person familiar with the episode told Folha that Monday's strike was of similar scale. Saudi Aramco did not respond to a request for comment, and the Houthis have not claimed the action so far.
Explainer: the Strait of Hormuz is the narrow sea passage between Iran and Oman through which about one fifth of the oil consumed in the world moves. When fighting breaks out nearby, ships stop crossing out of fear of attack, supply shrinks and prices rise. Folha reported that traffic in the strait has fallen to its lowest level since May.
For Brazilian consumers, expensive crude pressures gasoline and diesel prices, items with heavy weight in the IPCA, Brazil's official inflation index. US stock exchanges were closed on Monday for the Labor Day holiday, according to Exame, while Brazil was also on holiday for its Independence Day. The next market reference is expected on Tuesday (8), when US trading resumes.