Hormuz Disruptions Send Oil Prices Soaring

The US Energy Information Administration (EIA) has raised its forecast for global oil prices in the third quarter of this year, citing continued disruptions to transits through the Strait of Hormuz.

The Brent spot price reached as high as $105/bbl on July 23 after renewed attacks on tankers and a reduction in oil shipments through the waterway.

The EIA now expects Brent crude to average $85/bbl in Q3, up from its previous forecast of $74/bbl. This is due to the agency's assumption that production shut-ins will persist through August before flows slowly increase in September.