Oil Prices Surge Amid Strait of Hormuz Tensions

Attacks on vessels in the Strait of Hormuz have driven oil prices to multi-week highs, with analysts warning this could be just the beginning. On Saturday, U.S. forces and Iran's Islamic Revolutionary Guard Corps (IRGC) engaged in strikes targeting oil tankers and other ships in the vicinity of the strait. This escalation led to oil prices reaching 1.5-month peaks on Monday, and significantly reduced maritime traffic through the crucial waterway, according to Reuters.

U.S. Central Command reported that American forces struck three Iranian oil tankers, with one strike occurring near the island of Kharg, a key Iranian oil export terminal. The IRGC's naval forces claimed to have retaliated by attacking six vessels, stating three tankers were traveling on unauthorized routes within the strait, while three other targeted ships belonged to the U.S. and were in different areas.

Maritime intelligence firm Marisks described the Saturday attacks as a serious escalation, noting that commercial tankers are increasingly being used as tools for mutual economic pressure, blurring the lines between military confrontation and normal shipping. Data from analytics firm Kpler indicated that an average of about 10 vessels per day passed through the Strait of Hormuz in the past 10 days, the lowest figure since May.

Priyanka Sachdeva, head of market analysis at Phillip Nova, cautioned that the market could face more severe supply shortages if tanker traffic continues to slow, with early signs already apparent. Brent crude futures traded near $96.19 per barrel on Monday, after reaching a high of $97.93, the highest since July 24. WTI crude hovered around $91.03 per barrel, also near a six-week peak. Brent prices rose approximately 8% and WTI nearly 10% last week due to renewed U.S.-Iran strikes.

Goldman Sachs has warned that oil could climb to $120 per barrel if attacks on shipping intensify. Earlier, "Cursor" reported that rising global oil prices and instability in European markets are already posing risks to the cost of living in Israel.