Brent Prices Climb as Strait of Hormuz Ship Count Worsens

The reopening of trade in the Strait of Hormuz lasted only about a week. As a result, crude oil prices have been climbing for four consecutive sessions.

Traders initially thought that the supply disruption they sold into had ended, but it seems this was a false assumption. In reality, Washington and Tehran are adding new demands rather than removing existing ones, leading to a worsening physical flow through the strait.

The Brent benchmark has reclaimed ground above its 50-day moving average, and market prices have been steadily increasing in stages rather than experiencing a sudden surge. The current situation suggests that traders need more ships to transport oil through the Strait of Hormuz, not just statements from policymakers.