Iran-US Tensions Send Crude Oil Prices Lower Amid Supply Risks
Crude oil prices slipped lower on Monday morning as tensions between Iran and the United States remain high, keeping markets on edge. The WTI crude price was around $81.50 at the start of the week, a modest decline that masks significant supply risks due to the Strait of Hormuz blockade.
The disruption in tanker activity through the strategic waterway has been severe, with only two vessels crossing the strait on Friday, neither carrying crude oil. This is a significant reduction from the typical 130 vessels passing through each day before the conflict.
The UAE accused Iran of striking another ADNOC tanker, while a bulk carrier was reportedly hit by an unidentified projectile. Further attacks on commercial shipping could intensify concerns about oil availability and push crude prices sharply higher.
President Trump warned Americans to expect higher gasoline prices due to the conflict, with U.S. gasoline prices already around $4.08 per gallon, approximately 29% above levels from a year earlier.