Oil Rebounds as Supply Concerns Persist
Oil prices rallied on Tuesday after the previous session's decline proved only a brief respite amid a prolonged surge triggered by the US-Israel war against Iran. The market has refocused on the risk of supply disruptions, particularly as the world's most vital energy corridor remains under heightened security pressure.
Global benchmark Brent oil remained above the psychologically important $100 per barrel level as the Strait of Hormuz remains effectively "closed" due to Tehran's actions. In Tuesday afternoon US trading, Brent rose about 3.2% to $103.38, while WTI rose about 3.1% to $95.31.
Both contracts weakened briefly on Monday after reports emerged that a handful of ships had successfully passed through the waterway. However, the market did not consider this enough to change the overall picture, as shipping remains severely restricted and the risk of attack remains high.
The de facto closure of Hormuz persists after President Donald Trump's pleas for allies to help secure the waterway were largely rejected. Trump on Tuesday criticized NATO countries for their lack of assistance. Meanwhile, Tehran has increased pressure by threatening to attack ships attempting to pass through the strait carrying goods that benefit the US or its allies.
Container shipping companies, concerned about crew safety and difficulties obtaining insurance coverage, have begun halting shipping through the strait. Major producers in the Persian Gulf are also attempting to reroute shipments or reduce output to address logistical constraints.
On the ground, security risks have again come under scrutiny after a projectile reportedly struck a tanker anchored near a port in the United Arab Emirates. Reports indicate the ship, which was near the port of Fujairah—on the southern side of Hormuz—suffered minor damage, but the incident underscores that the threat to shipping remains unabated.
Source: Newsmaker.id
