Crude oil prices hit one-month high amid escalation in the Strait of Hormuz

Global crude oil prices surged on Tuesday, reaching their highest level in nearly a month as escalating tensions between the United States and Iran raised concerns over energy supplies through the Strait of Hormuz, one of the world’s most important crude oil shipping routes.

At the start of trading, Brent crude futures climbed 2.3% to $85.20 per barrel, while US West Texas Intermediate (WTI) gained 2.4% to $80.05 per barrel. During the session, both benchmarks briefly rose by more than $2 per barrel before giving up part of their gains.

The latest rally followed a third consecutive night of US airstrikes on Iran. Washington also reinstated a naval blockade on Iranian vessels and proposed a 20% security fee for ships transiting the Strait of Hormuz. Market analysts said these developments have significantly increased geopolitical risks in global energy markets.

Prices also received support from a sharp decline in tanker traffic. Shipping data showed that the number of tankers transiting the Strait of Hormuz fell to its lowest level in two months. At the same time, the UAE Ministry of Defence reported that two UAE tankers were struck by Iranian cruise missiles in the southern part of the strait, killing one Indian crew member and injuring eight others.

Analysts say the key factor for the market remains the physical movement of crude oil through the Strait of Hormuz. Any prolonged disruption to tanker traffic or exports could push crude oil prices even higher. Conversely, if oil flows remain largely uninterrupted, the geopolitical risk premium could gradually fade.

Additional uncertainty stems from the broader conflict in the Middle East. Yemen’s Houthi movement launched missile attacks against Saudi Arabia and threatened to expand strikes on the region’s crude oil infrastructure. Meanwhile, traders are awaiting official US inventory data after a Reuters survey indicated that US crude oil stockpiles likely declined last week, while gasoline and diesel inventories may have increased.

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