Oil Prices Soar Amid Ongoing Tensions with Iran

Crude oil prices rose for a third consecutive day and reached their highest level in over three weeks, fueled by ongoing tensions between the US and Iran. The Strait of Hormuz, a key waterway through which Iranian oil exports pass, remains closed according to Tehran, but some quantities of oil continue to make their way through.

Saudi Aramco has resumed oil loadings from inside the Strait, while major Chinese shipping groups have begun taking oil cargoes outside the Gulf. Despite these moves, vessel traffic through the Strait remains limited, with only a single-digit number of crossings reported.

The market appears to be less sensitive to daily geopolitical news, according to Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets. He noted that the 'hidden or dark' oil shipments passing through the Strait are greater than expected, providing some protection against larger price increases.