Hormuz Strait Supply Disruptions Fuel Crude Oil Price Rise

Crude Oil prices are rising due to concerns over supply disruptions in the Strait of Hormuz, rather than production losses.

The recent American military strike on Iranian rocket launchers did not significantly impact oil supplies. In fact, the last batch of sea mines was cleared from the international shipping lanes just before the strike, and Iran was reloading them.

Shipping data shows that only five vessels a day were crossing the strait over the weekend, compared to about 20 before the war began in February.

The US Treasury has sanctioned nearly 60 entities, individuals, and vessels, which could impact oil supplies in the future. However, these sanctions take time to bite and are not currently affecting prices.