Middle East Tensions Send Oil Prices Soaring

Oil prices have surged as tensions in the Middle East escalate. The price of Brent crude futures rose by up to 1% on Monday, reaching $89.40 a barrel and currently trading at around $89.20. This increase comes after a sharp decline in tanker traffic through the Strait of Hormuz, with only five commercial vessels passing on Saturday compared to 31 transits during the previous weekend.

The slowdown in maritime traffic has raised concerns about geopolitical risk across energy markets. The recent attacks targeting Abu Dhabi National Oil Company (ADNOC) tankers and a Saudi Aramco refinery have also contributed to the increase in oil prices. US West Texas Intermediate (WTI) crude advanced to $82.83, with both benchmarks gaining over 5% last week.

The vessel-tracking data from Kpler reveals that maritime traffic through the Strait of Hormuz slowed dramatically over the weekend, causing a renewed concern about the security of oil supply routes.