Brent crude rises to $97.5, six-week high amid Strait of Hormuz tensions
Brent crude rose to $97.5 a barrel, a six-week high, as investors priced expectations of prolonged tight supply. Iran said it is close to agreeing a tanker route through the Strait of Hormuz with Oman.
5 per barrel on Monday, a six-week high and nearly 40% above levels from before the outbreak of the war in Iran, as traders priced in expectations of prolonged periods of tight supply. Iran said it was close to agreeing on a tanker route through the Strait of Hormuz with Oman. The US kept up hawkish rhetoric on the corridor as the US and Iran continued to strike each others' military and commercial vessels, adding to escalatory risks. Energy Secretary Chris Wright said Washington would maintain its naval presence and blockade.
A bigger rebound in crude prices was limited by major economies drawing on inventories to tame higher import turnover. The US SPR fell to less than 290 million barrels, the lowest since 1982. 6 million barrels per day, indicating a cutback in crude consumption despite steady demand for refined product.