Brent Crude Surges Above $90 as US-Iran Tensions Escalate
The price of Brent crude oil has risen above $90 per barrel as tensions between the US and Iran escalate once again. A tanker was struck by projectiles while sailing out of the Strait of Hormuz on Tuesday, with no casualties or environmental damage reported.
Analysts polled in August expect oil to remain above $80 per barrel through 2026 due to ongoing shipping disruptions, which is already being reflected in the market as it trades at a premium of over $10 above that floor.
The US Strategic Petroleum Reserve has fallen to its lowest level in 44 years, with 286.6 million barrels remaining after a decline of about 3.1 million barrels last week. The reserve's replenishment is being hindered by the lack of Venezuelan oil imports, as agreements on energy projects in Venezuela are still pending.