Key facts
- Crude oil prices have risen for four consecutive sessions, with Brent above $85 and WTI above $80 per barrel.
- Iran has threatened to disrupt energy exports beyond the Strait of Hormuz, raising concerns about additional maritime chokepoints.
- The Bab el-Mandeb Strait is a key focus for potential disruption to global oil shipments.
- U.S. crude oil inventories decreased by 1.7 million barrels for the week ending July 10.
- U.S. crude stockpiles are 6% below the five-year average.
- Distillate inventories increased by 4.6 million barrels, while gasoline stocks decreased.
Crude oil prices have climbed for a fourth consecutive session, with Brent crude holding above $85 per barrel and the U.S. benchmark WTI trading above $80. This upward trend is fueled by escalating geopolitical risks and concerns over potential supply disruptions. Iran has threatened to close "all other export corridors that benefit the US and its allies," beyond the Strait of Hormuz, raising fears that the Bab el-Mandeb Strait could also become a point of disruption for global oil shipments. The market has also reacted to a decrease in U.S. crude inventories, which fell by 1.7 million barrels for the week ending July 10, placing them 6% below the five-year average. Distillate inventories saw an increase of 4.6 million barrels, while gasoline stocks declined. The renewed hostilities between the U.S. and Iran, including U.S. strikes on Iranian targets and reinstated naval blockades, have intensified market anxieties regarding the security of vital shipping lanes.