Geopolitical tensions in the Bab al-Mandab strait drive Brent up nearly 12% since last week amid fears of supply disruptions.
Brent crude prices have climbed nearly 12% since last Friday as Iran threatens to block the Strait of Bab al-Mandab, a critical route for Saudi oil exports. The strait’s closure could further tighten global supply, pushing prices higher amid ongoing military escalations in the region.
Recent military strikes have already driven oil and gas prices upward, with analysts warning of additional gains if the strait is blocked. The Strait of Hormuz remains a persistent risk, though some tankers have recently passed through without incident.
Crude processing and imports are expected to rise in July as China receives delayed shipments and lifts export restrictions on oil products. The combination of geopolitical risks and recovering demand continues to support oil markets.