Key facts
- Crude oil prices climbed, with Brent crude trading at $91.48 and WTI at $86.97 per barrel.
- President Trump threatened new strikes on Iran, escalating geopolitical tensions.
- Tanker traffic in the Strait of Hormuz is significantly reduced compared to pre-conflict levels.
- Global oil market buffers, including U.S. inventories, are becoming exhausted.
- Diesel supply is tightening due to Russian export bans and disruptions in the Middle East.
Crude oil prices extended their earlier climb, with Brent crude trading at $91.48 per barrel and West Texas Intermediate at $86.97 per barrel, following President Trump's latest threat to Iran. This escalation puts global oil flows under renewed pressure as market buffers, such as U.S. inventories, approach minimum levels. Tanker traffic in the Strait of Hormuz remains significantly below pre-conflict levels, with only five commodity vessels traversing the waterway on Monday, compared to a ten-day average of 14. Analysts note that while oil producers have grown more comfortable transiting the chokepoint, further escalation could jeopardize these flows. The situation is compounded by tightening diesel supply, affected by Russia's extended export ban and disruptions in the Middle East. The growing unease on oil markets about supply security comes as demand begins to pick up due to seasonal factors.