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- October 19, 202617°
- BIST10011,593-1.10%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,191.40+0.25%
- INTEREST37.00%-1.00
- BITCOIN82,130+0.14%
- October 19, 202617°
US-Iran tensions raise risks in the Strait of Hormuz as Brent tops $101.20
Oil prices rose 3.5% on Wednesday, September 9, with Brent crude reaching $101.20 a barrel. Tensions between the United States and Iran, along with the risk to shipping in the Strait of Hormuz, increased concerns over supplies from the Middle East.
Concerns over supplies from the Middle East weighed on oil markets as prices rose 3.5% on Wednesday, September 9. Brent crude, the international benchmark, reached $101.20 a barrel at 3:30 p.m. Greenwich Mean Time.
New reciprocal attacks between the United States and Iran heightened concerns over global energy supplies. Markets are closely watching tanker traffic around the Strait of Hormuz, through which a significant share of crude oil and petroleum products is transported.
Maritime security concerns in the Strait of Hormuz
After Iran launched ballistic missiles at two US Navy warships last weekend, the US military carried out an attack on three Iranian oil tankers.
Iran also warned the crews of vessels near the ports of Kuwait and Bahrain to leave their ships. These developments deepened concerns over maritime security and regional oil shipments.
A prolonged disruption to tanker traffic in the Strait of Hormuz could reduce global supplies and drive up energy prices.
Energy infrastructure in Saudi Arabia also targeted
Attacks by the Iran-backed Houthis on energy infrastructure in southern Saudi Arabia have compounded existing risks to oil supplies. The attacks also targeted an oil refinery in Jizan with a capacity of approximately 400,000 barrels per day.
Chinese refineries seek alternative supplies
The price increase was also supported by a recovery in demand from China. Due to shipping disruptions in the Gulf region, Chinese refineries sought alternative crude oil supplies from producers in Africa, Canada and Latin America.
Turning to more distant suppliers is expected to raise shipping costs and intensify competition for crude grades from outside the Middle East.
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