US-Iran Escalation Sends Oil Prices Soaring Amid Shipping Disruptions

Oil prices surged to new highs after renewed US-Iran hostilities escalated over the weekend. Brent crude jumped 5.9% to $91.19, while WTI increased by 3.4% to $86.27.

The Strait of Hormuz, a critical shipping lane for global oil supplies, has seen vessel crossings collapse to just a handful per day due to persistent attacks and Iranian mine-laying operations. Goldman Sachs estimates that total Gulf oil exports are running at 15-16 million barrels per day, down from the pre-war level of 20-21 million.

The US Strategic Petroleum Reserve holds only 289.7 million barrels, its lowest level since 1982. Releasing the remaining 39 million barrels would leave it with just 243 million, which is dangerously close to the minimum required for safe infrastructure operations.