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by Stockwatch Business Reporter

West Texas Intermediate crude for September delivery (new front month) added $2.49 to $86.83, while Brent for September added $3.06 to $94.07 (all figures in this para U.S.). Western Canadian Select traded at a discount of $18.70 to WTI, down from a discount of $17.80. Natural gas for August added six cents to $2.92. The TSX energy index added 5.57 points to close at 424.87.

Oil prices jumped again on escalating U.S.-Iran hostilities in the Middle East. Alongside existing risks to shipments through the Strait of Hormuz, oil tankers are also reportedly making U-turns in the Red Sea after warnings from the Iran-backed Yemeni Houthis, intensifying concerns over shipping through two critical energy chokepoints.

The situation prompted a statement of caution from the International Energy Agency (IEA). Once known for its seemingly inexhaustible predictions that peak oil demand was just around the corner (earning no shortage of eyerolls in the industry), the IEA has found itself returning to more traditional ground, tracking geopolitical risk premiums. Executive director Fatih Birol stated that the IEA is "closely monitoring" oil markets in light of the rising hostilities. "There is no room for complacency on oil security," he warned. While IEA members still hold "substantial" emergency stockpiles (even after recent releases), he said the best outcome would still be a "full and unconditional reopening of the Strait of Hormuz ... to avoid a further deterioration in global energy security."

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