ICE Brent surges 9.6% after US-Iran standoff disrupts key oil shipping lane, lifting prices above $83 per barrel.
Brent crude prices climbed above $83 per barrel as tensions between the US and Iran intensified, disrupting vessel traffic through the Strait of Hormuz. The rally, up 9.6% in a single session, reflects growing risks of attacks and competing toll proposals for safe passage.
Prior to the surge, Brent had traded below $80 per barrel, with markets pricing in stable supply routes. The latest escalation follows threats of a 20% US fee on cargo values, far exceeding Iran’s proposed $1 toll per barrel.
Shipping costs could rise sharply if the standoff persists, with a 20% fee on a 2m-barrel VLCC potentially adding $32m or $16 per barrel to transit expenses.