Oil Futures Hit Six-Week Highs as Strait of Hormuz Vessel Traffic Plummets

Oil prices climbed on Thursday following renewed conflict in the Middle East. Brent crude futures reached $96.22 a barrel by 1327 GMT, marking their fourth consecutive day of gains and six-week highs earlier in the session. U.S. West Texas Intermediate crude futures also advanced, closing at $91.79. The market reaction followed news that Iran's health minister confirmed eighteen deaths and one hundred eighty-six injuries in Tuesday night's US strikes, alongside reports of casualties among Iranian soldiers. Simultaneously, Israeli Defence Minister Israel Katz warned that his nation would disable Iran's energy infrastructure if Tehran retaliates again. Analysts from Saxo Bank linked these diplomatic threats directly to the price increase.

Supply concerns have intensified as physical movement of goods slowed significantly in the Strait of Hormuz. Preliminary data indicates only six commodity vessels transited the strait on Wednesday, a sharp decline from eleven ships recorded just before and well below the ten-day average of thirteen. This reduction represents a critical bottleneck for global energy supply chains.