Brent crude climbs beyond $97 as Hormuz disruptions choke global oil supplies
Brent crude oil prices have risen above $97 per barrel due to ongoing Middle East tensions and threats to shipping in the Strait of Hormuz. Analysts suggest that the conflict between the US and Iran is creating a long-term risk premium that could keep energy prices elevated through 2027.
Why it matters
Rising oil prices threaten global economic stability and could lead to increased inflation and supply chain disruptions.
Oil prices inched higher on Tuesday as conflict in the Middle East continues to intensify, disrupting global oil supplies for over six months now. Brent crude was up 0.05%, or $0.05, at $97.05 while WTI crude rose 1.03%, or $0.94, to $92.42.The latest gains came after Iran warned that it would retaliate against any further US attacks on its assets, adding to concerns that the conflict could drag on and threaten energy infrastructure and shipping in the Gulf.The Strait of Hormuz remains a focus for traders, with heightened tensions around the key route for global crude shipments prompting them to build a risk premium into oil prices. Brent had already climbed to its highest level since July 24 in the previous session.Iran on Monday warned that energy infrastructure across the Gulf, including US oil and gas interests, was vulnerable.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in