Hormuz Tensions Push Oil Prices Above $100
Oil prices have surpassed $100 per barrel as tensions in the Middle East escalate and shipping disruptions through the Strait of Hormuz continue to hinder global oil supplies. The Brent crude benchmark rose by nearly 3% on September 9, reaching its highest level since late July, while West Texas Intermediate (WTI) climbed above $95 per barrel.
The increase is largely attributed to the recent US attacks on five Iranian oil tankers and strikes by Iran-backed Houthis on Saudi Arabian energy infrastructure, including the Jazan refinery. This escalation has raised concerns that disruptions could spread beyond Hormuz to Saudi infrastructure and alternative export routes.
Shipping through the Strait of Hormuz remains severely constrained, with only six commodity vessels transiting the strait on September 8, down from a daily average of about 12 in the past 10 days. The US Energy Information Administration (EIA) estimated that crude oil and petroleum liquids moving through Hormuz averaged 4.9 million barrels per day in the second quarter of this year, down from 21.6 million barrels per day before the conflict began.
Product markets are even tighter, with Vitol CEO Russell Hardy stating that the market is missing nearly 2 million barrels per day of refined products from the Middle East and another 2 million barrels per day from Russia.