Oil climbs to $99.33 as fighting intensifies near critical straits
Global crude prices rose more than 1 percent for a fourth straight day amid escalating violence in the Middle East that threatens vital oil shipping routes.
Brent crude futures reached $99.33 per barrel on Wednesday, up 1.4 percent, as renewed attacks across the region heightened fears of supply disruptions. US West Texas Intermediate prices also climbed to $94.34 per barrel, gaining 1.4 percent in early trading.
Conflict intensified Tuesday when Houthi militants linked to Iran launched strikes on several Saudi cities. In retaliation, US forces targeted multiple Iranian oil tankers while Iran struck a US base in Jordan. Analysts from ING noted these developments suggest peace talks remain far from restarting and that markets will continue pricing in a significant risk premium.
Shipping data showed six cargo ships transited the Strait of Hormuz yesterday, below the ten-day average of about 12 vessels. This is notable as some ships often omit transponder use during voyages. Five entered the strait while one exited, including a Panamax-sized tanker and a medium vessel.
At the same time, 25 cargo ships moved through the Bab El-Mandeb Strait yesterday. This exceeds its ten-day average of roughly 27 ships only if counting a specific timeframe, but the absolute number remains high compared to previous weeks among vessels including two Suezmax tankers and several Aframax crude carriers.
