Oil Prices Rise as Strait of Hormuz Shipping Slows

7 hours ago 5

TEMPO.CO, Jakarta - Global oil prices rose and commercial shipping traffic through the Strait of Hormuz slowed again after the latest attacks between the United States and Iran increased security risks in the world's primary energy distribution route.

As reported by ANTARA, Brent crude on Sunday rose about 3.5 percent to nearly $79 a barrel, about nine percent above pre-conflict levels.

Maritime data firm Kpler noted that only 22 vessels passed through the strait on Thursday. According to the company, before the conflict broke out, more than 130 ships per day passed through the Strait of Hormuz.

The escalation came after the U.S. struck about 140 targets in Iran following Tehran's attack on a container ship in the Strait of Hormuz. Iran said it had retaliated by attacking U.S. positions in the region.

Kpler's Head of Middle East Research Amena Bakr said the latest attacks are destroying confidence in commercial shipping companies, The New York Times reported.

"That confidence eroded very, very quickly. We're back to square one when it comes to that situation," Bakr said.

The International Energy Agency (IEA), in its report on Friday, said the recovery in Gulf oil exports after the initial U.S.-Iran ceasefire last month had boosted global supply. However, the IEA warned that broader recovery remains dependent on a rapid easing of conflict.

Bakr said energy markets were getting used to recurring tensions in the region. "The market has adjusted to this new normal. The movement of prices hasn't really reflected the reality of the situation or the level of geopolitical risk," she said.

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