Hormuz Traffic Plummets as Oil Prices Soar Above $95

Oil traffic through the Strait of Hormuz has dropped significantly in recent days, with only four tankers passing through on Tuesday, down from ten the day before. This comes after a surge to 17 million barrels on Monday, the highest volume since the war broke out in late February, according to U.S. Energy Secretary Chris Wright.

The sudden drop in traffic has pushed prices higher, with Brent crude futures trading above $95 a barrel on Wednesday, and U.S. crude WTI above $90. The sharp increase in oil prices is attributed to the reduced flow through Hormuz, which typically sees around 8 million barrels per day.

The market had previously been reacting mainly to news of tankers being hit off the coast of Oman and fears that the Middle East conflict would disrupt supplies. However, the recent surge in traffic on Monday pointed to oil still reaching the global market in large volumes.

Iran's Revolutionary Guard has added to shippers' caution by disabling two oil tankers with sea mines while passing through the Strait of Hormuz. The United States carried out a fresh wave of strikes on Iran on Tuesday, which further heightened tensions in the region.