US-Iran Tensions Send Oil Prices Soaring Amid Disrupted Supply
The oil market has seen an uptick in prices as hopes for a US-Iran peace deal continue to dwindle. Iran has announced it will adopt a more aggressive military posture, while the US has ruled out extending a temporary ceasefire agreement.
A senior Iranian official told Reuters that Iran would shift to a 'fully offensive' stance due to stalled efforts to negotiate a permanent end to the war with the US. The move is likely to heighten worries about energy supply and disrupt oil tanker traffic through the strategic Strait of Hormuz.
According to ship-tracking data from Kpler, only five commodity vessels transited the strait on Saturday, down from 31 in the prior weekend. This has led chief market analyst at KCM, Tim Waterer, to describe the situation as a 'dual chokehold' on oil supply.