Hormuz Tensions Send Oil Prices Soaring to $91
Oil prices have surged to their highest level since late July as tensions in the Middle East intensify. The Strait of Hormuz, a critical global shipping route, remains a source of concern after a vessel was struck by an unidentified projectile on Tuesday.
The incident, which damaged the engine room and injured a crew member, has added to the risk of supply disruptions. With only six commodity vessels crossing the strait on Monday, traders are growing increasingly nervous about the impact on global oil flows.
KCM Trade analyst Tim Waterer notes that the lack of progress between Washington and Tehran, combined with limited shipping activity, is keeping a significant supply premium embedded in crude prices. The International Energy Agency has also cut its 2026 global supply outlook, forecasting production to decline by 4.3 million barrels per day this year.
The US Energy Information Administration estimates that oil and petroleum-liquid flows through Hormuz averaged just 4.9 million barrels per day in the second quarter, compared with 21.6 million before the conflict. This has left tight inventories amplifying the geopolitical premium on crude prices.