US-Iran Tensions Drive Crude Prices Higher Amid Strait of Hormuz Disruptions
Crude oil prices surged on Friday as tensions between the US and Iran escalated, sparking concerns about disruptions to Middle East energy supplies. Brent crude, the international benchmark for Nigerian crude, rose by 1.64% to $88.50 per barrel, while U.S. West Texas Intermediate crude climbed 1.92% to $82.81 per barrel.
The gains came after Washington warned that its naval pressure on Iran could continue indefinitely, raising uncertainty over the restoration of normal energy flows through the Strait of Hormuz.
Shipping activity through the waterway remains below recent levels, with only nine commodity-vessel transits recorded on Thursday compared to a daily average of 12 in August. The restricted traffic has forced refiners and traders to reassess supply routes, increasing costs and complexity for moving barrels from the Middle East.