Hormuz Uncertainty Keeps Oil Prices Elevated
Oil prices rose again on Tuesday as uncertainty over the Strait of Hormuz kept supply concerns in focus. The risk premium in crude markets remained high due to unresolved US-Iran discussions over the reopening of the waterway.
The Strait is crucial for oil trade, with a significant volume of crude and petroleum products passing through it. Disruptions have forced some shipments to take longer routes, contributing to tighter physical markets and higher freight costs.
However, there are signs that supply through alternative routes is improving. Saudi Arabia has resumed exports through its East-West pipeline after repairs, providing an additional route that bypasses the Strait. This recovery has limited the rise in oil prices, but concerns over the wider supply situation persist.