Global oil prices experienced a significant increase as escalating tensions between Iran and the United States introduced renewed risks to maritime traffic in the Strait of Hormuz.
Brent crude, the international oil benchmark, climbed 3 percent to approximately $78 per barrel on Monday, marking an 8 percent rise from its pre-conflict price. This surge reflects heightened market concerns over potential supply disruptions.
Daily ship traffic through the Strait of Hormuz, a critical chokepoint that normally handles one-fifth of global oil supply, has recently fallen to its lowest point in a month. Maritime data firm Kpler reported that only 14 vessels transited the strait on Sunday, a stark contrast to the more than 130 vessels that passed daily prior to the recent escalation.
The latest exchanges saw the U.S. military report striking approximately 140 Iranian targets over the weekend, following an Iranian attack on a container ship within the strait. Iran's military stated on Monday that it had retaliated by targeting U.S. military installations in the region, including locations in Bahrain, Jordan, and Kuwait.
Amena Bakr, Head of Middle East Research at Kpler, commented that any assurances regarding the safety of commercial vessels transiting the Strait of Hormuz have rapidly diminished. She characterized the situation as a return to a state of high uncertainty, stating, "That confidence eroded very, very quickly. We’re back to square one when it comes to that situation."
