U.S. Oil Climbs to 20-Month High as Hormuz Traffic Plunges

robot
Abstract generation in progress

West Texas Intermediate (WTI) oil futures are up by over 8% to $81 on Thursday, reaching their highest level since July 2024 amid supply disruptions in the Strait of Hormuz.

Claim 70% Off TipRanks Premium

  • Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

  • Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Tensions in the Middle East have sent traffic through the passage plummeting by over 95%, delaying the flow of oil and gas. “If this drags on for weeks, the ramifications are huge,” said Kpler analyst Matt Smith. The strait is responsible for roughly 20% of global oil flows.

Strait of Hormuz Activity Draws to a Standstill

On Wednesday, zero tankers crossed the strait, down from 100 on Friday before the U.S. and Israel launched a coordinated attack, according to CNN.

The war has also affected oil production and exports. Saudi Arabia halted operations at its largest oil refinery following an Iranian drone attack, while China urged domestic refiners to suspend gasoline and diesel exports.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin