Brent Surges Above $92 as Iran Tensions Rise
Crude oil prices surged on Thursday after renewed US strikes on Iran raised concerns about Middle East production and shipping routes. Brent crude broke above $92 a barrel, while WTI held near $85.
The price increase was driven by the revival of geopolitical risk premium, which traders pay when conflict threatens production or transportation. The escalation restored part of this premium, sending oil prices higher.
According to the Energy Information Administration, US crude inventories fell by 7.2 million barrels to 404.5 million barrels in the week ended July 24. This decline pushed commercial stocks to their lowest level since 2018.
However, shipping data suggests that routes remain operational despite the tensions. MarineTraffic reported 53 confirmed vessels crossing the Strait of Hormuz and Bab el-Mandeb on July 28, including 12 Hormuz transits and 41 Bab el-Mandeb crossings.