Oil Nears $90 as Risks Rise Across Hormuz and the Red Sea
🛢️ Brent crude rose more than 2% to around $89.61 a barrel during Asian trading, as fresh attacks near Bab el-Mandeb and the Gulf of Oman weakened expectations that regional oil shipping could normalize soon.
🚢 Traffic through the Strait of Hormuz remains sharply reduced at roughly 6–10 vessels per day, compared with 125–140 before the conflict. Iran’s continued hardline stance is keeping a higher geopolitical risk premium embedded in oil prices.
📈 If disruptions persist, higher shipping and insurance costs could continue supporting energy prices. This also adds to inflation risks ahead of U.S. CPI data and may influence expectations for Federal Reserve policy.
👀 In the near term, prospects for reopening Hormuz and security conditions along key shipping routes will be central to whether oil can hold near the $90 level.
#OilMarket $CL $NATGAS $BNB
🛢️ Brent crude rose more than 2% to around $89.61 a barrel during Asian trading, as fresh attacks near Bab el-Mandeb and the Gulf of Oman weakened expectations that regional oil shipping could normalize soon.
🚢 Traffic through the Strait of Hormuz remains sharply reduced at roughly 6–10 vessels per day, compared with 125–140 before the conflict. Iran’s continued hardline stance is keeping a higher geopolitical risk premium embedded in oil prices.
📈 If disruptions persist, higher shipping and insurance costs could continue supporting energy prices. This also adds to inflation risks ahead of U.S. CPI data and may influence expectations for Federal Reserve policy.
👀 In the near term, prospects for reopening Hormuz and security conditions along key shipping routes will be central to whether oil can hold near the $90 level.
#OilMarket $CL $NATGAS $BNB