Crude oil prices hit $92.14 per barrel following U.S.-Iran strikes on vessels in the Strait of Hormuz
Escalated tensions between the U.S. and Iran over oil tankers drove crude prices up while shipping through the strategic waterway dropped to ten ships daily.
Oil prices extended their gains on Monday after fresh strikes by the United States and Iran targeted vessels in and around the Strait of Hormuz. According to U.S. Central Command, American forces struck three Iranian oil tankers on Saturday near Kharg Island. In response, Iran's Islamic Revolutionary Guard Corps navy stated it had aimed at three oil tankers using unauthorized routes and three additional U.S. vessels in other areas. Crude futures closed higher on September 7 with Brent reaching $96.80 per barrel and West Texas Intermediate hitting $92.14 per barrel. These gains followed a sharp rally last week where Brent climbed eight percent and WTI nearly ten percent as renewed attacks disrupted flows through the waterway. The strategic impact is already visible, with an average of only ten commodity ships crossing the Strait each day over the past ten days, according to a Reuters report. This volume represents the lowest level since May.
