Key facts
- Oil prices surged 4% on Monday amid U.S.-Iran tensions and a collapse in Strait of Hormuz traffic.
- Brent Crude topped $79 per barrel and WTI Crude reached $74.36.
- Tanker traffic in the Strait of Hormuz hit a five-week low, with vessels using "dark mode" transits.
- European natural gas prices jumped 3% as Middle East LNG shipments are threatened.
- Qatar suspended all maritime activities, impacting LNG export flows from Ras Laffan.
Oil prices surged over 4% in Asian trade on Monday, with Brent Crude topping $79 per barrel and WTI Crude reaching $74.36, driven by escalating U.S.-Iran tensions and renewed fears of supply disruptions. Tanker operators are once again switching off transponders when transiting the Strait of Hormuz to avoid detection, a tactic that reappeared following Iranian attacks on commercial ships. Total tanker traffic through the critical chokepoint collapsed to a five-week low.
European benchmark natural gas prices opened 3% higher on Monday, rebounding above the 50-euro threshold, as the renewed hostilities put an abrupt end to the recovery in Middle East LNG exports. Qatar's Transport Ministry issued an urgent advisory urging all maritime vessels to temporarily cease sailing and engaging in maritime activity until further notice, a move that has direct implications for LNG export flows from Ras Laffan. This suspension could tighten the global market just as Europe is scrambling to refill gas storage sites ahead of the next winter, potentially making the process more difficult and expensive.