Brent Crude Nears $100 as Middle East Tensions Reignite
Brent crude oil prices have been on a rollercoaster ride in recent months, and it's about to hit another milestone. On October 8th, Brent crude futures for November delivery rose by 1.45% to $98.45 a barrel, while West Texas Intermediate (WTI) for October climbed 2.6% to $93.91. This surge is largely due to renewed tensions between the US and Iran, as well as shipping instability in the Strait of Hormuz.
The price of Brent crude has seen significant fluctuations since late February, initially jumping over 30% following attacks by the US and Israel on Iran. It peaked at $126 a barrel in late April before easing, but is now approaching the $100 mark once again.
Russell Hardy, CEO of Vitol, notes that approximately 10 million barrels pass through the Strait of Hormuz daily, with about 9 million being crude oil. However, he warns that this volume may not remain stable every day due to shipping risks and decisions made by vessels, insurers, captains, and crew.