Hormuz Tensions Fuel Ongoing Oil Price Surge
Oil prices continue to rise as tensions escalate between the US and Iran in the Strait of Hormuz.
The Brent crude futures price climbed 79 cents, or 0.82%, to $97.07 a barrel by 0512 GMT while US West Texas Intermediate crude was at $92.28 a barrel, up 80 cents, or 0.87%.
The increased prices come after the US and Iran resumed attacks on each other's vessels in the region, causing a reduction in oil flows through the Hormuz strait where a fifth of the world’s oil supply is transported.
US forces struck three Iranian oil tankers on Saturday, including one off the coast of Kharg Island, near Iran’s key oil export hub. The navy of Iran’s Islamic Revolutionary Guard Corps said it targeted three oil tankers that were travelling through unauthorized routes in the Strait of Hormuz as well as three additional US vessels in other areas.
An average of 10 commodity ships transited the Strait of Hormuz per day over the past 10 days, the lowest since May, data from analytics firm Kpler showed on Monday.