Oil Prices Surge Near $100 as Strait of Hormuz Attacks Escalate
Oil prices surged to near $100 per barrel as attacks on commercial vessels by the US and Iran threaten to disrupt crude flows through the Strait of Hormuz, a critical shipping route for global energy supplies.
The Brent crude futures rose 89 cents, or 0.92%, to $97.17 a barrel by 1333 GMT after touching $97.93, their highest level since July 24. The West Texas Intermediate crude gained 79 cents to $92.27.
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. This slowdown is a significant change in the risk facing oil markets, according to maritime intelligence firm Marisks.
The attacks have raised concerns about tanker traffic and the potential for a supply shock. Goldman Sachs said oil could climb as high as $120 a barrel if attacks on shipping intensify.