Oil Prices Climb Amid Hormuz Tensions and IEA Supply Talks
Oil prices climbed on Wednesday, October 7, as tensions in the Strait of Hormuz balanced rising shipments against increased Iranian attacks on vessels. Brent crude surpassed $101 per barrel, while US West Texas Intermediate (WTI) hovered near $90. The volatility followed Tuesday’s sharp swings, where Brent briefly dipped below $99 before recovering.
The UK Maritime Trade Operations (UKMTO) reported at least nine attacks in the Strait of Hormuz this month, despite more tankers passing through compared to previous weeks. US Vice President JD Vance acknowledged the strikes in a Reuters interview, stating that Iran was targeting ships but not enough to halt oil and gas flows. He also mentioned ongoing talks with Iranian President Masoud Pezeshkian and Foreign Minister Abbas Araghchi.
Shell’s CEO Wael Sawan warned that global stockpiles were shrinking, and product prices, including diesel, remained elevated. He noted that West Asian oil flows had rebounded to about 80% of pre-conflict levels. Meanwhile, Saudi Arabia reported pumping 5.8 million barrels daily through its Red Sea pipeline, bypassing the volatile Strait of Hormuz.
The International Energy Agency (IEA) was set to discuss an emergency release of up to 100 million barrels from diesel and crude inventories, as pledged by Group of Seven leaders last week.