Oil prices jumped sharply Thursday as renewed attacks on tankers and falling ship traffic through the Strait of Hormuz revived fears of another major disruption to global energy supplies.
Brent crude rose about 4.5% to $104.75 a barrel, while U.S. West Texas Intermediate climbed to roughly $92.28, both reaching their highest levels in more than a week.
Hormuz Traffic Falls to Two-Month Low
Shipping through the Strait of Hormuz has dropped to its lowest level in more than two months.
On October 6, only seven commodity vessels passed through the waterway, the lowest daily total since July 23. Crude oil flows through the strait fell to about 10.1 million barrels per day, roughly 74% of pre-war levels.
Traffic recovered slightly the following day, but remained well below the more than 20 daily crossings seen earlier in the week.
Record Number of Tanker Attacks
Security concerns intensified after the highest number of tanker attacks recorded in any single week since the Iran conflict began.
At least 12 attacks, attempted attacks or harassment incidents were reported between September 28 and October 5, including drone activity and aggressive communications directed at commercial vessels.
One tanker was recently struck by a projectile near Qatar, causing injuries among crew members.
The growing danger is forcing shipping companies to reassess routes, security measures and insurance costs.
Why Hormuz Matters
The Strait of Hormuz is one of the most important energy corridors in the world.
Before the conflict, around one-fifth of global crude oil and liquefied natural gas supplies passed through the narrow waterway between Iran and Oman.
Even when total oil production remains available, disruptions in shipping can raise transportation costs and create uncertainty about whether supplies will reach global markets on time.
U.S. Hurricane Adds More Pressure
Oil prices were also pushed higher by falling U.S. production as Hurricane Isaias forced major producers, including Shell and Chevron, to shut down part of their Gulf of Mexico operations.
More than 25% of U.S. Gulf oil production and around 16% of natural gas production were temporarily offline, adding another layer of supply concern.
Global Supply Has Not Collapsed
Despite the severe disruption in Hormuz, Middle Eastern exporters have partly compensated by increasing shipments through alternative routes.
Exports through the Gulf of Oman and Red Sea reached about 6.7 million barrels per day, helping keep overall Middle Eastern crude exports near pre-conflict levels.
That means the immediate problem is not simply a lack of oil, but also the growing difficulty and risk of moving it safely.
For consumers, continued instability around Hormuz could keep upward pressure on fuel prices even if overall global production remains relatively strong.
Sources: Reuters, CNN
By NJ RADAR Team