Key facts
- Oil prices surpassed $90 a barrel due to escalating U.S.-Iran tensions.
- Brent crude rose to $90.95 per barrel and U.S. benchmark crude climbed to $84.04 per barrel.
- Tanker traffic through the Strait of Hormuz has nearly halted.
- Iran has threatened to disrupt oil exports beyond the Strait of Hormuz, potentially impacting the Bab el-Mandeb Strait.
Oil prices surpassed $90 a barrel as escalating U.S.-Iran tensions and retaliatory strikes impacted shipments through the Strait of Hormuz. Brent crude rose 3.2% to $90.95 per barrel, and U.S. benchmark crude climbed 2.8% to $84.04 per barrel.
ING commodities strategists noted that the U.S. and Iran continue to exchange strikes, warning that unchecked escalation could lead to widespread attacks across the Persian Gulf. Tanker traffic through the Strait of Hormuz, a crucial waterway for global oil transport, has nearly ground to a halt, adding to pressure on supplies.
Markets were also impacted by the rollout of a powerful Chinese AI model by Moonshot AI, which, along with other AI-related shares, declined on Friday. Jonas Goltermann, chief markets economist at Capital Economics, wrote that the return to war in the Strait of Hormuz may start to weigh more heavily on financial markets, especially if strong tech earnings reports continue to be met with skepticism.