Oil prices remained steady near a five-month high as traders balanced risks of further Iranian attacks in the Strait of Hormuz against strong crude flows from the Persian Gulf. Brent crude traded above $109 a barrel, close to its highest level since May, while West Texas Intermediate hovered around $98. Iran’s First Vice President Mohammad Reza Aref stated the country has “no choice” but to assert control over Hormuz to safeguard national security, according to IRNA.
Despite recent hostilities, Gulf crude exports have continued at an accelerated pace, with US Energy Secretary Chris Wright noting flows recovered to about 80% of prewar levels, though refined-product shipments remain constrained. Brent has surged nearly 80% this year due to widening conflicts in the Middle East and between Russia and Ukraine. Refined products, especially European diesel futures, have risen even more sharply.
Hamad Hussain, a commodities economist at Capital Economics Ltd., said risks to oil prices clearly lie to the upside, warning of potential renewed supply falls and continued price increases. Iraq’s oil minister reported exports exceeding 3.4 million barrels a day this month, nearing prewar levels after offering deep discounts. The Trump administration is authorizing sales of sanctioned oil tankers to expand capacity amid US-Iran tensions, with Wright estimating about 1,600 vessels in the global “dark fleet.”.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing