Global oil prices climbed sharply, with Brent crude rising above $90 per barrel after renewed military attacks between the United States and Iran heightened fears of prolonged disruptions to global energy supplies.
The latest price surge follows nearly a week of escalating hostilities, which have significantly reduced the movement of oil and gas shipments through the Strait of Hormuz, one of the world’s busiest energy transit routes.
According to Reuters, vessel traffic through the strait has fallen dramatically, with only four ships passing on Sunday compared to nearly 50 daily crossings before the conflict. Iran’s Revolutionary Guards warned that the waterway would remain unsafe for oil and gas shipments as long as U.S. military actions continued.
Brent crude initially surged to its highest level in more than a month before trimming some gains after Iran’s foreign ministry indicated that negotiations with the United States could still continue if they served the country’s national interests.
The oil market also came under additional pressure after exports from the Caspian Pipeline Consortium (CPC) terminal in Russia’s Black Sea region were suspended following drone attacks on two tankers. The terminal is a major export route for Kazakhstan’s crude oil production.
Market analysts noted that Brent crude has gained more than $10 per barrel in recent trading sessions as geopolitical tensions continue to fuel uncertainty and increase the risk premium attached to global oil prices.
The Strait of Hormuz remains critical to global energy markets, carrying roughly 20 per cent of worldwide oil consumption as well as a substantial portion of global liquefied natural gas exports. Any prolonged disruption is expected to have significant implications for international energy supplies.
Shipping activity has also slowed considerably, with vessel owners becoming increasingly cautious. One oil products tanker reportedly halted near Oman’s Musandam Peninsula instead of proceeding through the strait, while tracking data showed it switched off its transponder as a security precaution during the voyage.
