Tensions Keep Oil Prices Elevated Amid Persian Gulf Escalation

Oil prices remain elevated as tensions between the US and Iran escalate following recent missile strikes into neighboring Gulf countries. The Strait of Hormuz, a critical waterway for oil shipments, remains a key concern for traders.

The price of Brent crude has held above $95/bbl, with some analysts suggesting that a sustained rally may be difficult to maintain if Hormuz shipments continue uninterrupted.

Iraq's oil exports picked up in August, reaching 2.35m b/d, the highest amount since the start of the US-Iran conflict. The majority of these exports (2.26m b/d) came from southern routes, which would eventually need to pass through the Strait of Hormuz.

However, Saudi Arabia kept its official selling price for Arab Light unchanged in October, suggesting that the market may not be as tight as previously thought.