Strait of Hormuz crisis sends oil price close to $120 as Middle East conflict rattles markets

"The Strait of Hormuz, a narrow waterway linking the Persian Gulf with the Gulf of Oman, normally carries around 20% of the world's oil exports. The latest conflict has seen tanker traffic collapse as insurers, shipping companies and crews refuse to risk the route. According to data from shipping tracker MarineTraffic, only nine commercial vessels passed through the strait last week, compared with a typical daily average of about 50 before hostilities intensified."

"The global benchmark Brent crude oil briefly climbed to $119.50 a barrel in overnight trading, the first time prices have approached $120 since 2022, before easing back to around $107 after reports that the Group of Seven could release strategic oil reserves to stabilise markets."

"Analysts at Goldman Sachs warned that prices could climb even higher if tanker flows do not recover quickly. The bank said Brent crude could surpass the $146 peak reached during the 2008 oil crisis if the strait remains"

Oil prices reached their highest levels in nearly three years as escalating Middle East conflict severely disrupted energy supplies through the Strait of Hormuz, a critical global energy corridor. Brent crude briefly climbed to $119.50 per barrel before easing to around $107 following reports of potential strategic oil reserve releases. Tanker traffic through the strait collapsed dramatically, with only nine vessels passing weekly compared to a typical daily average of 50. Iran's Revolutionary Guard warned of targeting ships using the route. Gulf producers including Qatar, UAE, Kuwait, and Iraq cut production amid tensions. Brent crude has risen over 50% since early 2026, and analysts warn prices could exceed $146 if shipping disruptions persist.

Read at Business Matters