Crude prices climb 2.85% to $70.56 after Iran asserts control over key shipping lane and UKMTO raises threat level to severe.
Iran has declared that traffic in the Strait of Hormuz operates under its arrangements, warning the US of an immediate response to any provocative actions. The statement follows a UKMTO report elevating the threat level to severe due to heightened risks of deliberate hostile actions, including navigation interference and mine risks in the Traffic Separation Scheme.
Recent incidents and ongoing IRGC pressure on AIS-active vessels have maintained a heightened threat environment, prompting extreme vigilance. The Strait of Hormuz, a critical chokepoint for global oil shipments, remains a focal point amid rising geopolitical tensions.
Crude oil prices surged $1.96, or 2.85%, to $70.56, nearing daily highs as market participants weigh supply disruption risks in the region.