"A key focus was the situation around the strait at the southern end of the Persian Gulf, through which 20% of the world's oil supply passes. Tanker traffic dropped sharply amid disruption of satellite navigation systems, data and analytics firm Kpler said on X, while the UK Maritime Trade Operations Centre reported attacks on several vessels in the area on either side of the strait and warned of elevated electronic interference to systems that show where ships are."
"Higher oil prices raise the prospect of costlier gasoline prices for U.S. drivers as well as for other goods at a time when people in many countries have been stung by inflation."
"Monday's price increase was within the $5-$10 per barrel range expected by analysts based simply on the fear factor associated with the outbreak of war. And some war concerns were already reflected in the price before the conflict started."
Oil prices rose sharply as disruptions in the Strait of Hormuz, through which 20% of world oil passes, created supply uncertainty following U.S. and Israeli attacks on Iran. U.S. crude climbed 7.4% to $71.97 per barrel, while Brent increased 7.7% to $78.46. Tanker traffic dropped significantly due to satellite navigation system disruptions and reported vessel attacks. Iran launched drone attacks on oil infrastructure, including a strike on a Marshall Islands-flagged tanker and attacks on Saudi refineries. The price increase aligned with analyst expectations of $5-$10 per barrel based on conflict-related uncertainty. Prolonged disruptions or infrastructure damage could drive prices higher, affecting global gasoline and consumer goods costs.
Read at Fortune
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