US-Iran Conflict Pushes Crude Oil Prices Up 4% Amid Supply Concerns
Crude oil prices have increased by about 4% this week due to ongoing tensions between the US and Iran. The conflict has led to concerns over supply, with low tanker traffic through the Strait of Hormuz remaining below pre-war levels.
The US threat to maintain its naval blockade of Iran indefinitely and increase economic pressure has also contributed to the price rise.
Susan Bell, senior vice president for oil at Rystad Energy, noted that despite bearish crude stock data, the broader geopolitical situation has prevented a sharper price decline.
Oil prices have been under pressure from various reports, including those from the International Energy Agency and OPEC. The IEA forecasted a supply shortage of 1.8 million barrels per day in the current quarter, while OPEC reduced its demand forecast for 2026 to 580,000 barrels per day.