Oil Prices Surge as US-Iran Tensions and Strait Attacks Fuel Supply Fears

Oil prices rose on August 12 as doubts over a US-Iran peace deal and attacks on vessels in the Strait of Hormuz heightened supply fears.

The Brent crude futures price gained 72 cents, or 0.81%, to $89.63 per barrel, while WTI crude rose by 71 cents, or 0.85%, to $83.91 per barrel.

Tensions in the Strait of Hormuz have led to a decline in maritime traffic, with only six vessels passing through on Monday compared to an average of around 11 over the previous ten days.

The US Energy Information Administration expects disruptions to Middle Eastern oil supplies amounting to approximately 600,000 barrels per day to continue through the end of 2027.