Hormuz Strait Tensions Keep Oil Prices Stable Amid Low Stocks

The oil market has been closely watching the Strait of Hormuz, a critical waterway for global oil trade. Despite concerns over security and supply disruptions, WTI futures remain supported due to low US crude stocks and weak ship traffic.

A recent incident at the strait saw Iran turn back four tankers that were attempting to pass through on Friday. Two large crude carriers did manage to make it through, but this is seen as a sign of Iranian military control over the waterway.

This development has led Saudi Arabia to propose a multinational defense coalition for the Red Sea region, where many of its oil shipments pass through.