Oil prices hold firm as heightened geopolitical risks in the Strait of Hormuz curb shipping and raise supply concerns.
West Texas Intermediate crude oil trades near $84.50 per barrel, stabilizing after three consecutive days of gains. Persistent tensions between the US and Iran fuel worries over global supply disruptions, particularly in the Strait of Hormuz.
Recent attacks on vessels linked to Saudi Arabia and the UAE have escalated, with eight reported incidents this month. Shipping data shows a sharp decline in transit through the strait, as vessel owners avoid the route amid uncertainty over the blockade’s resolution.
Iraq has approved new export mechanisms to bypass the strait, routing crude through specialized companies. Despite US assurances of mine clearance, risks remain elevated, sustaining upward pressure on oil prices.