US-Iran Deal Doubts Spark Global Oil Supply Concerns
Oil prices have surged as doubts over the US-Iran deal heighten supply concerns in global energy markets. The current rally in Brent and WTI futures is a direct expression of declining confidence that the preliminary agreement will translate into restored physical supply flows.
The market's price action tells its own story: Brent crude has advanced to $89.63 per barrel, up 72 cents or +0.81%, while WTI crude climbed to $83.91 per barrel, up 71 cents or +0.85%. This marks the highest closing levels since July 31.
The Strait of Hormuz, a 33-kilometre-wide navigable channel between Iran and Oman, is a critical chokepoint for global oil supply. Approximately 20% of the world's traded oil passes through this corridor. Current traffic data presents a stark picture: daily vessel transits have collapsed from 125-140 vessels to just six.