Oil Prices Soar Amid Middle East Shipping Disruptions
Oil prices continue to surge as attacks on shipping in the Middle East deepen concerns about supply disruptions. The latest incidents involve Iran-aligned Houthi forces and the US military, widening the risk beyond the Strait of Hormuz.
The US Energy Information Administration (EIA) estimates that only 4.9 million barrels a day of crude and petroleum liquids moved through Hormuz in the second quarter, down from 21.6 million barrels a day in the final quarter of 2025.
Infinox analyst Thadeu Dos Santos expects oil volatility to remain elevated unless diplomacy produces a clear breakthrough. The EIA's latest outlook shows that global oil inventories are expected to fall by an average of 3.8 million barrels a day in the third quarter, with Brent prices averaging around $85 this quarter.
Despite an unexpected 9.1 million-barrel increase in US crude inventories last week, traders are waiting for official EIA data and keeping a close eye on US consumer-price data due later on Wednesday.