Crude Prices Soar on Strait of Hormuz Uncertainty and Saudi Oil Tanker Attack

Crude oil prices surged on Thursday due to uncertainty surrounding the proposed reopening of the Strait of Hormuz, a key waterway in the Middle East.

The September WTI crude oil contract closed up $2.07 (+2.75%) and September RBOB gasoline rose by $0.0997 (+3.51%).

The proposed deal between Iran and Oman to reopen the Strait of Hormuz would restrict some oil exports from several Gulf States, with vessels belonging to the US, Israel, or any other nation that has 'caused damage' to Iran prohibited from the waterway.

Additionally, concerns about oil supplies from the Middle East were fueled by a reported missile attack on a Saudi oil tanker by Houthi rebels in the Gulf of Aden.