Oil prices surged over 3% in early trading Thursday following reports of renewed disruptions in the Strait of Hormuz, the critical Middle Eastern waterway that handles about 20% of global petroleum shipments. Brent crude futures rose to $87.42 per barrel, the highest level in two weeks, after maritime tracking data showed at least three tankers altering course unexpectedly near the strait.
The apparent delays come amid heightened regional tensions following last week’s attack on an Israeli-linked vessel off the coast of Oman. While no party has claimed responsibility for the latest incidents, analysts note the strait remains a flashpoint between Iran and Western powers. “Any unexplained activity in this corridor sends immediate ripples through energy markets,” said a commodities analyst at S&P Global Platts who requested anonymity due to client sensitivities.
The Strait of Hormuz, only 21 miles wide at its narrowest point, sees an average of 20.5 million barrels of oil daily. Recent months have seen multiple near-conflicts between Iranian forces and commercial shipping, including a July incident where the U.S. Navy intervened to prevent Iranian commandos from seizing two tankers.
Market watchers suggest the price spike could persist if disruptions continue. “We’re seeing risk premiums return after a relatively calm September,” noted RBC Capital Markets’ head of global commodity strategy in a research note. The U.S. Energy Information Administration reports commercial crude inventories remain 5% below seasonal averages, leaving markets vulnerable to supply shocks.