Oil Prices Soar Amid Escalating Tensions in Middle East

The global oil market experienced a volatile week due to escalating tensions in the Middle East. Brent crude rose 6.39% for the week, while WTI crude increased 5.66%. The price of Brent crude approached $95 per barrel, its highest level in nearly four weeks.

The Strait of Hormuz, a critical waterway for global oil supply, saw a significant drop in traffic this week. Only five cargo ships passed through on August 15 and none on August 16, a record decrease from the 31 ships the previous week. This has raised concerns about potential supply disruptions.

Middle Eastern producers are scrambling to find alternatives. Abu Dhabi National Oil Company (ADNOC) sold at least 14 million barrels of spot crude oil to Asian refineries, while Saudi Aramco is offering crude oil for sale at ports outside the Strait of Hormuz.