Oil Prices Surge as Strait of Hormuz Shipping Fears Escalate
Oil prices surged on Tuesday, pushing Brent above $91 a barrel and WTI towards $87, as renewed fighting between the US and Iran raised fears of a prolonged disruption to Gulf energy flows.
The immediate concern is not Iranian production, but whether commercial shipping can move reliably through the Strait of Hormuz, which handles roughly a fifth of global oil trade.
Only five commodity vessels were recorded transiting the strait on Monday, well below the 10-day average of 14. No liquid tankers were observed in the tracked traffic.
Analysts at ANZ Research told The Wall Street Journal that the renewed US-Iran strikes raise the prospect of prolonged supply disruption, particularly because both sides appear to be preparing for a drawn-out confrontation rather than a quick diplomatic settlement.
The market is not pricing a complete shutdown, with Saudi Aramco offering more crude for loading outside Hormuz and regional suppliers increasingly relying on pipelines, ship-to-ship transfers, and vessels operating with tracking systems switched off.