"Traders were betting the supply of oil from Iran and elsewhere in the Middle East would slow or grind to a halt as US President Donald Trump suggested that attacks would continue until US objectives were met. Military strikes by the US and Israel on Iran showed no sign of lessening while Iran responded with missile barrages across the region, risking dragging its neighbours into the conflict."
"All eyes were on the Strait of Hormuz, through which about a fifth of the world's seaborne oil trade flows. Tankers travelling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran. While the vital waterway has not yet been blocked, marine tracking sites showed tankers piling up on either side of the strait, wary of attack or unable to get insurance for the voyage."
"The most immediate and tangible development affecting oil markets is the effective halt of traffic through the Strait of Hormuz, preventing 15 million barrels per day of crude oil from reaching markets."
Oil prices surged significantly following escalating military tensions between the US, Israel, and Iran. Brent crude climbed 9% to $79.41 per barrel, while West Texas intermediate rose 8.6% to $72.79. The price increases reflect concerns about disrupted energy supplies from the Middle East. Traders anticipate prolonged conflict as President Trump indicated attacks would continue until objectives are met. The Strait of Hormuz, through which approximately 20% of global seaborne oil trade flows, faces potential blockage. Tankers are accumulating on both sides of the strait due to attack risks and insurance complications. Two vessels were attacked on Sunday, intensifying concerns about regional stability and oil market accessibility.
#oil-price-surge #middle-east-geopolitical-tension #strait-of-hormuz-supply-disruption #energy-market-volatility
Read at www.aljazeera.com
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