Oil Prices Rise Due to Tensions in the Strait of Hormuz

The escalation of the situation in the Strait of Hormuz has been accompanied by an increase in oil prices. Brent crude oil has risen by almost 3% and reached $85.20 per barrel. WTI prices have climbed to $80.05 per barrel.

The situation intensified after the United States reinstated a naval blockade against Iran and carried out military strikes over three consecutive nights. Donald Trump also proposed an initiative to impose a 20% tariff on safe passage through the Strait of Hormuz.

The situation worsened further after Iran struck two tankers belonging to the United Arab Emirates with winged missiles. One crew member was killed in the attack.

Analysts believe that military confrontation poses a threat to oil supplies. Tanker traffic through the Strait of Hormuz has fallen to its lowest level in two months.

Further changes in oil prices will now largely depend on how much vessel traffic through the strait will be restricted. An additional threat is posed by rocket attacks from Houthi forces in Yemen directed at Saudi Arabia.

Source: Investing.com