US-Iran Conflict Sends Crude Oil Prices Soaring
Crude oil prices surged for the fourth consecutive day due to escalating US-Iran military strikes, raising concerns about energy supply disruptions through the critical Strait of Hormuz.
The conflict has heightened fears of a global energy supply disruption, causing Brent and WTI crude oil prices to increase significantly in international markets. Analysts emphasize the Strait of Hormuz as a crucial oil chokepoint, with mining threats causing market fear.
Brent crude prices have shifted towards the upper end of the $85-95 range, with Anindya Banerjee from Kotak Securities predicting Brent will remain within this range but with a clear shift towards the higher end. The risk for Brent crude prices has increased due to the heightened tensions between the US and Iran.
The weekend saw the sharpest escalation in a month, pushing crude more than 3% higher after Brent had settled near $89 a barrel on Friday. Visible tanker transits fell to just five vessels a day over the weekend, while crude flows past the blockade averaged 6.7 million barrels a day last week, against 20 million before the war.