Oil rises above $100 as Hormuz traffic remains restricted
Brent crude reaches $107.82 a barrel as attacks on shipping, a Saudi pipeline shutdown and disputed claims about Strait of Hormuz access tighten supply concerns.
Oil prices have risen above $100 a barrel as disruptions in the Strait of Hormuz continue to threaten global energy supplies. Brent crude gained $3.21 to $107.82 a barrel, while US West Texas Intermediate rose $3.17 to $103.22.
The waterway carries roughly one-fifth of global oil and gas flows. Attacks on shipping and the temporary shutdown of Saudi Arabia’s East-West oil pipeline have added pressure to a market already affected by restricted maritime traffic.
The United States says traffic through Hormuz is improving and that ships carrying oil are being escorted. US Energy Secretary Chris Wright said average flows over the past week were about 10 million barrels a day, or more than two-thirds of previous levels.
Iran disputes Washington’s account, saying it controls access to the strait and has established a restricted shipping zone. Preliminary tracking data cited by Reuters recorded 14 vessel transits over the weekend, compared with more than 100 a day before the war, although the figures may exclude ships with their tracking systems switched off.
The Saudi pipeline was reportedly shut after a drone attack originating from Iraq, according to Saudi officials. If the closure persists, about 4 per cent of global oil supply could be affected, but the duration of the shutdown and its eventual impact remain unclear.
The UK Maritime Trade Operations centre reported that a vessel was struck by an unknown projectile in Hormuz. A planned meeting in Oman between Gulf countries and Iran was also postponed, leaving diplomatic efforts to secure shipping access stalled.
