Oil prices rise as Strait of Hormuz tensions persist

Oil prices rose slightly as tensions in the Middle East continued to fuel concerns over supply disruptions. Brent crude futures climbed 27 cents, or 3%, to $100.59 a barrel, while US West Texas Intermediate (WTI) crude futures gained 30 cents, or 0.3%, to $89.73 a barrel, according to Al Jazeera.

Priyanka Sachdeva, head of market insights at Phillip Nova, noted that shipping data shows regional crude exports have exceeded pre-war levels on several days in late September. Alternative routes and logistical adjustments have allowed producers to keep barrels moving despite the disruption around the Strait of Hormuz.

However, Sachdeva cautioned that calling this a full normalization of supply is premature. Attacks on tankers around the Strait of Hormuz have increased, maintaining elevated costs, insurance, routing, and security risks. Data showed Gulf oil flows, excluding Iran, climbed to 81% of pre-war levels in September, driven by a recovery in Saudi exports despite attacks on the kingdom’s oil infrastructure and escalating Iranian attacks on regional shipping.

Iranian exports fell to zero due to a US blockade.