Hormuz Tanker Traffic Keeps Oil Markets Tight

The oil market is being influenced by the Strait of Hormuz tanker traffic, keeping WTI futures supported despite weak demand. The Iranian military has been controlling the strait on a 'one vessel at a time' basis, with two Very Large Crude Carriers (VLCCs) loaded with Gulf cargoes making it through.

The situation is further complicated by drone strikes at Egypt's Damietta port and threats from the Houthis against Saudi Red Sea cargo vessels. In response, Saudi Arabia has proposed a multinational defense coalition for the waterways it needs to keep open.