Hormuz Tensions Send Oil Prices Soaring to Three-Month High

Oil prices remain at their highest level in three months due to renewed tensions in the Middle East, specifically the blockade of the Strait of Hormuz.

The recent escalation of hostilities between the US and Iran has led to a tightening global supply, pushing oil prices up. Saudi Arabia's crude exports fell to a nine-year low of 3 million barrels per day in August, exacerbating the situation.

The price of Brent crude futures rose by 9.3% during the week to a three-and-a-half-month high of $96.2/barrel, an 18% increase for the month. The Strait of Hormuz is a crucial waterway that connects the Middle East to global markets, and its closure or restriction has significant implications for oil prices.

The US and Iran have been engaged in a series of retaliatory strikes, with each side hitting the other's military facilities and oil tankers. Saudi Aramco's decision to keep the price of Arab Light crude oil unchanged for Asian buyers may be having a calming effect on prices, but the overall trend remains uncertain.