Oil Markets Climb Amid Strait of Hormuz Tensions
Brent crude futures were trading at approximately $104 per barrel by 1015GMT, marking a rise of more than 2% during the session. Meanwhile, the US benchmark West Texas Intermediate (WTI) climbed to nearly $95, also posting gains of over 2% as buying momentum strengthened.
The upward movement was fueled by diminishing expectations of a rapid diplomatic resolution, while shipping activity through the Strait of Hormuz remained restricted. This reinforced apprehension about potential supply shocks in one of the world’s most vital energy corridors, with about one-fifth of global oil consumption passing through the passage, according to the US Energy Information Administration.
Investor confidence was additionally unsettled by reports from Iranian media indicating that Tehran had successfully received its first transit fee for passage through the waterway. A news agency, referencing Iran’s deputy parliament speaker, reported that the payment had been processed under a newly implemented arrangement, intensifying worries over stricter oversight of commercial shipping routes.
Crude prices also found support from renewed caution expressed by the International Energy Agency (IEA). The agency’s Executive Director Fatih Birol warned that the global economy is confronting “the biggest energy security threat in history” as the Iran conflict and ongoing disruptions in the Strait of Hormuz continue to significantly strain international energy supply chains.
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