Brent Crude Futures Surge Past $106 Amid Strait of Hormuz Tensions

Oil prices continued their upward trend on September 29 amid concerns over Middle East supply disruptions from the U.S.-Iran conflict. Brent crude futures rose by $1.49, or 1.4%, to $106.77 a barrel, while U.S. West Texas Intermediate crude gained $1.34, or 1.5%, to $93.94 a barrel.

Despite signs that exports from the region were recovering, oil prices remained elevated due to less efficient and more costly workarounds such as ship-to-ship transfers, according to Tim Waterer, chief market analyst at KCM Trade.

The increase in oil exports from major Middle Eastern producers rose to 12.8 million barrels per day in September, the highest level since February, driven by higher shipments from Saudi Arabia and the United Arab Emirates.