Hormuz Tensions Fuel Oil Price Surge
Crude oil prices rose for the fourth consecutive day as tensions in the Strait of Hormuz continued to escalate. The latest tanker-tracking data suggests that traffic through the critical waterway has slowed further, amid increased rhetoric from both Iran and the United States.
The Strait of Hormuz is a crucial export route for several major oil-producing nations, including Saudi Arabia and Iraq. However, the ongoing conflict between the US and Iran has raised concerns about the safety of ships passing through the area.
According to data released by tanker-tracking firm, Brent crude was trading at $91.53 per barrel, while West Texas Intermediate (WTI) was changing hands for $85.47 per barrel. This marks a significant increase from the previous day's prices.
Sparta Commodities senior oil analyst June Goh noted that 'shipping risks are increasing again as attacks from Iran and Houthis remain prevalent in both key chokepoints, keeping oil prices supported in the near term.'