Oil Prices Spike as Middle East Tensions Escalate
Oil prices rose on Tuesday as tensions in the Middle East escalated following renewed fighting between the US and Iran. Brent crude futures increased by $0.66, or 0.7%, to $91.15 a barrel, while US West Texas Intermediate (WTI) crude was up $0.70, or 0.8%, to $86.46.
The conflict has raised concerns about supply disruptions from the world's key crude-producing region. Tim Waterer, chief market analyst at KCM, noted that the potential for Iranian retaliation brings damage to energy infrastructure around the Gulf back into the equation, adding fresh uncertainty for shipping through the Strait of Hormuz.
Shipping data from Kpler showed that the number of visible commodity vessels transiting the Strait held at five per day, below the 10-day average of around 14. None of the ships were liquid tankers, highlighting the risks to oil supply.