Oil rises as US-Iran strikes restrict Strait of Hormuz shipping
Brent crude approaches US$97 a barrel as reduced traffic through the key oil route raises concerns about prolonged supply disruption.
Oil prices have climbed to near six-week highs as escalating strikes between the United States and Iran reduce shipping through the Strait of Hormuz, a waterway that carries roughly one-fifth of the world’s oil supply during peacetime.
Brent crude hovered near US$97 a barrel on Monday, up about 9 per cent over five days and 19 per cent over the past month. West Texas Intermediate reached US$92.27, also near a six-week high, according to Al Jazeera.
Shipping through the strait has slowed sharply. Data analytics platform Kpler recorded an average of 10 commodity ships crossing each day over the past 10 days, as competing claims about tanker and vessel strikes added to uncertainty over supply flows.
The United States reportedly struck three Iranian oil tankers on Saturday. Iran’s Islamic Revolutionary Guard Corps said it had struck three tankers and three US-linked vessels elsewhere. The claims have not been independently verified in the supplied reporting.
Saudi Aramco’s Jizan facilities were reportedly struck for the second time in a month, according to Financial Times reporting cited by Al Jazeera and based on two unnamed sources. The extent and duration of any production or shipping disruption remain unclear.
US fuel prices have also risen, with average petrol reaching US$4.15 a gallon and diesel topping US$5.90. Asian economies rely more heavily than the United States on imports through the strait, while China is reportedly drawing on domestic supplies and its strategic petroleum reserve as it reduces reliance on imports.
