Oil Prices Soar Amid Strait of Hormuz Shipping Disruptions
Oil prices surged to a six-week high on Monday as attacks on commercial vessels by the US and Iran disrupted shipping through the Strait of Hormuz, raising fears of a supply shock. Brent crude futures rose 89 cents, or 0.92%, to $97.17 a barrel, while West Texas Intermediate crude gained 79 cents to $92.27.
The latest gains extend a sharp rally triggered by the escalation in attacks, with Brent rising about 8% last week and WTI gaining nearly 10%. The concern for oil markets is shifting from the conflict itself to the safety of commercial shipping routes that carry a significant share of global energy supplies.
An average of just 10 commodity ships crossed the Strait of Hormuz each day over the past 10 days, the lowest level since May, according to analytics firm Kpler. The slowdown comes after the US struck three Iranian oil tankers on Saturday, including one off the coast of Kharg Island, a major Iranian oil export hub.