Crude oil rose above $85 a barrel on Friday, extending its monthly gain to more than 20% amid renewed hostilities between the US and Iran and reports that several tankers were forced to reverse course in the Strait of Hormuz. Iran’s Fars news agency reported that the Revolutionary Guards blocked two tankers from transiting the key waterway, while another four changed their routes. Even so, ship-tracking data from Kpler indicated that two very large crude carriers loaded in the Gulf managed to pass through the Strait on Friday.
Tensions have escalated this month after a temporary pause in hostilities between Washington and Tehran broke down, Yemen’s Houthi forces stepped up their involvement, and Saudi Arabia joined US operations targeting Iran-backed groups in Iraq. In addition, declining US crude inventories and a Ukrainian attack on Russia’s Volgograd oil refinery have heightened concerns over global supply.
