Crude Prices Soar Amid Strait of Hormuz Tensions and Global Supply Disruptions

Crude oil prices jumped on Tuesday after the US and Iran exchanged strikes in the Strait of Hormuz over the weekend, dampening hopes the strait will reopen soon. The attacks halted operations at several Saudi oil facilities, including the Jazan refinery which had previously been attacked in July.

The loss of about 2 million bpd from crude exports in the Middle East and a further 2 million bpd from Russia due to Ukraine's drone attacks have tightened global oil markets. Saudi Arabia's August crude exports dropped to about 3 million bpd, the lowest amount in 9 years.

President Trump said that the US naval blockade on Iranian ports is putting pressure on the country, and he has no timeline for resolving the US-Iran conflict.