Hormuz Heats Up, Oil Nears US$80
Oil prices rebounded after the United States launched a new wave of attacks on Iran. Tensions have escalated as both sides continue to dispute the status of the Strait of Hormuz, a vital waterway for global energy trade.
Brent crude oil prices moved closer to US$80 per barrel after the US attacked dozens of Iranian targets on Sunday. Washington said the attacks were aimed at weakening Iran's ability to disrupt international shipping through the Strait of Hormuz. Iran later declared the waterway closed until further notice, although Western navies insisted Hormuz remained open.
President Donald Trump also told Fox News that the United States might seize Hormuz, without elaborating. He also said the US wanted "compensation" for protecting the shipping lane. This statement raised market concerns about the potential for a broader escalation.
Meanwhile, Iran stated that communications to de-escalate tensions were ongoing. However, Tehran acknowledged that the interim peace deal with the US had entered a crisis phase. Iran also launched attacks on American allies in the Middle East, while Kuwait reported that one of its offshore drilling facilities was hit and damaged.
New uncertainty in the Strait of Hormuz has reintroduced a war premium into oil prices. This waterway is one of the most crucial chokepoints for the world's energy supply. If the disruption persists, global efforts to rebuild oil stocks could be disrupted, as previously warned by the International Energy Agency.
Ship traffic seen through Hormuz was also reported to be low from Sunday through Monday morning. However, it is unclear how many ships continued to transit without activating satellite signals. The Joint Maritime Information Center stated that the southern shipping lane coordinated by Oman is still available.
As a result, oil prices are likely to remain high as long as the conflict continues to subside. If attacks spread to key energy facilities in the Gulf region, analysts estimate that oil prices could even reach US$100 per barrel. Rising oil prices could also increase inflationary pressures, strengthen expectations of high interest rates, and pressure risk assets in global markets. (arl)
Source: Newsmaker.id
