Crude oil prices climbed as fresh violence in the Middle East undermined confidence that the Strait of Hormuz would reopen soon. Brent crude jumped more than 2 percent to near $90 a barrel, roughly 24 percent above pre-conflict levels.
The rise followed reports of an attack on a commercial vessel in the Bab al-Mandeb strait that killed six people, alongside continued US military action that further disrupted shipping through the region’s critical waterways.
Negotiations between Oman and Iran over reopening the strait have continued without breakthrough, with Tehran insisting the waterway will stay closed until Washington meets demands including war reparations and sanctions relief.
Oil transit through the strait has fallen to around 9 million barrels a day, far below the pre-conflict average of about 20 million, keeping a persistent risk premium in global energy prices.
For the Gulf’s oil-exporting economies, the elevated prices bring a windfall even as the closure of their most important shipping route complicates the logistics of getting crude to market.
