Oil Prices Spike as Strait of Hormuz Tensions Escalate
Oil prices have surged to near $90 per barrel as tensions over the Strait of Hormuz persist. According to Al Jazeera, Brent crude gained more than two percent overnight into Wednesday, pushing the international benchmark close to its highest level in months.
The rise in oil prices comes amid a series of attacks on shipping in the Middle East, which have raised concerns about the prospects of reopening the critical waterway. Yemen's internationally recognised government accused the Iran-aligned Houthis of killing six people in missile attacks on a commercial vessel in the Bab al-Mandeb Strait.
US President Donald Trump claimed that Washington had total control of the strait, but maritime traffic remains far below pre-war levels. Only 10 vessels passed through the waterway on Monday, compared with about 130 daily transits before the war.
Market analysts have questioned the US Energy Secretary's claim that the seven-day average of oil leaving the strait had recovered to about nine million barrels per day. The figure is considerably higher than estimates from tanker-tracking platforms.