Brent Crude Surges Above $102 as US-Iran Conflict Intensifies
The global oil market is in turmoil as Brent crude prices surged above $102 a barrel due to ongoing hostilities between the US and Iran. The conflict has led to a significant reduction in tanker traffic through the Strait of Hormuz, with zero very large crude carriers successfully transiting the strait since September 2.
Rystad Energy data shows that daily crude shipments through the chokepoint have contracted to under 2 million barrels, down from 8-9 million barrels before fighting resumed. The collapse in transit volumes has forced Middle Eastern producers to reroute shipments through alternative corridors.
Analysts at ANZ warn that the tit-for-tat attacks suggest Persian Gulf oil flows will likely remain disrupted 'for the foreseeable future', threatening deeper supply losses in a market already struggling to adjust.