Oil Prices Rise Above $90/b, Brent Hits $92

Global benchmark Brent crude has climbed more than eight per cent to trade above $92 a barrel (bbl).

Also, U.S. oil futures surged above $90/bbl for the first time since October 2023 as the escalating conflict involving Iran disrupted critical energy flows and effectively halted most tanker traffic through the Strait of Hormuz.

The U.S. benchmark gained more than 11 per cent during the session, putting prices on track for the largest weekly percentage increase in at least two decades.

The Strait of Hormuz a narrow waterway linking the Persian Gulf with global markets normally carries roughly one-fifth of the world’s oil supply.

Citigroup estimates that disruptions to shipping through the chokepoint could temporarily remove between 7 million barrels a day (MMbpd) and 11 MMbpd of crude supply from the global market.

The latest rally marks a sharp reversal from earlier this year when oil prices were pressured by abundant supply and weaker demand expectations.

With Middle East tensions escalating and shipping through Hormuz effectively halted, traders are increasingly pricing in the risk of a prolonged supply disruption that could tighten global crude balances and push prices even higher, according to Bloomberg.