Crude oil climbed above $92 per barrel on Tuesday, its highest level in three months, after Iran announced that an agreement with Oman on managing shipping through the Strait of Hormuz was close to completion. The news heightened concerns about Tehran’s expanding influence over this critical maritime chokepoint. Markets were also watching for a potential US response following strikes on Iranian tankers in the strait over the weekend.
Prices jumped nearly 10% last week amid renewed fighting between the US and Iran, stoking fears of further disruptions to Middle Eastern energy supplies. Both sides intensified attacks over the weekend, targeting commercial and military vessels in and around the Strait of Hormuz. Facilities belonging to Saudi Aramco in Jazan, near the Red Sea, were also hit again on Monday, though reported damage was limited.
Despite the escalating risks, crude continues to move out of the Persian Gulf, with an estimated 7 million barrels per day of oil and refined products still transiting the Strait of Hormuz.
