Brent crude breaches $90 as Iran vows not ‘a single drop’ of oil or gas will transit Hormuz
American forces have started ninth consecutive night of strikes against Iranian targets.
Brent crude prices have surged past $90 per barrel as tensions escalate in the Middle East. Iran's latest statement vowing that not "a single drop" of oil or gas will transit the Strait of Hormuz has added to the supply concerns. The Strait of Hormuz is a critical waterway for global oil exports, with approximately 20% of the world's crude oil and condensate passing through it.
The ongoing conflict between the US and Iran has led to a ninth consecutive night of American strikes against Iranian targets. This escalation has raised concerns about potential disruptions to oil supplies from the region. The oil market has been sensitive to geopolitical developments, and any further escalation could lead to increased volatility in prices. The current price increase may be a reflection of traders pricing in the risk of supply disruptions.
Looking ahead, market participants will be closely watching for any signs of further escalation in the conflict and its potential impact on oil supplies. Additionally, traders will be monitoring the weekly inventory data from the US Energy Information Administration (EIA) to gauge the current state of global oil supplies. Any indication of changes in supply or demand dynamics could influence oil prices, which are already under pressure from the ongoing tensions in the Middle East.
Originally reported by cnbc.com. Expo-News adds analysis for finance & markets readers.