Energy Markets on Alert as Brent Crude Hits $78 Amid US-Iran Tensions
Following escalating tensions between the United States and Iran and reports of restricted shipping traffic in the Strait of Hormuz, global oil prices surged by more than three percent. Brent crude oil futures rose by $2.34 to reach $78.35 per barrel, while US West Texas Intermediate (WTI) crude increased by $2.21 to trade at $73.62 per barrel.
This increase came after Iranian officials announced the closure of the Strait of Hormuz in response to what they described as repeated violations of a ceasefire agreement. The Strait of Hormuz is one of the world’s most critical oil transit routes, and any disruption directly impacts global energy markets.
Meanwhile, US President Donald Trump stated that the passage remains open for commercial shipping. However, tracking data from Kepler shows that on Sunday only six vessels passed through the strait, the lowest number in five weeks. Reports indicate that one of these vessels was carrying two million barrels of Iranian oil.
According to the International Energy Agency’s monthly report, global oil supply increased by 4.1 million barrels per day in June but still remains approximately 9.4 million barrels per day below pre-conflict levels.
Analysts at ANZ Bank noted in a briefing that hopes for a relatively quick resolution to the recent tensions have been cast into doubt following last weekend’s developments, and markets remain cautious about future oil supply outlooks.
