US-Iran Conflict Threatens Global Oil Supplies and Prices
The ongoing conflict between the US and Iran has led to increased attacks on oil tankers in the Strait of Hormuz, raising concerns about global crude prices.
The latest escalation comes after Iran fired ballistic missiles at a US aircraft carrier and destroyer near the strait. The US then struck three Iranian oil vessels, targeting those linked to the shadow network that helps finance Iran's Islamic Revolutionary Guard Corps and its regional allies.
The Strait of Hormuz is one of the world's most important oil routes, with about 20 million barrels of oil moving through it every day before the war. However, data from marine analytics company Kpler shows traffic remains far below normal levels, with only 13 vessels passing through the strait over the past 10 days.
The uncertainty surrounding shipping in the Strait of Hormuz is putting further upward pressure on crude prices, which have already jumped sharply since the war began. Brent crude futures closed at $96.28 a barrel on Friday, their highest level since July 24, and are now just $3.72 below $100.
Analysts warn that oil could move above $100 if the conflict gets worse, with Iranian officials specifically stating that Tehran has plans to push oil prices beyond this level.