- Iran shut the Strait of Hormuz after the US and Israel attacked the country on February 28.
- Over the weekend, the number of visible commodity vessels transiting the Strait of Hormuz dropped to five per day, per Kpler.
- On Monday, US President Donald Trump threatened further strikes against Iran following the first exchange of direct attacks in a month on Sunday.
- US stocks declined on Monday after the US attacked Iran, fueling a rise in oil prices and increased bets that the Federal Reserve would raise interest rates at its September meeting.
- On Tuesday, oil prices gained as resumption of fighting renewed fears of supply disruptions; Brent and WTI settled up 2.7% and 2.8% respectively in the previous session.
- UKMTO reported a tanker was struck by three projectiles while sailing out of the Strait of Hormuz.
- On Friday, Trump announced a deal with Venezuela to control oil reserves, which he said would help replenish the US Strategic Petroleum Reserve.
- Crude oil inventories in the US SPR declined by about 3.1 million barrels last week, leaving stockpiles at 286.6 million barrels.
- Analysts polled by Reuters in August expect oil prices to remain above $80 a barrel in 2026 as shipping disruptions continue.
Oil prices gained on Tuesday as renewed fighting between the U.S. and Iran raised fears of supply disruptions from the Middle East, a key crude-producing region.5
Brent crude rose 2.7% and WTI increased 2.8%, reaching their highest levels since late August.
U.S. President Donald Trump threatened further strikes against Iran following recent attacks, heightening tensions in a conflict that had shifted to an economic standoff.
Tim Waterer, chief market analyst at KCM, noted, “These bring the potential for Iranian retaliation back into the equation,” which could damage energy infrastructure and disrupt shipping through the Strait of Hormuz.
The number of visible commodity vessels transiting the Strait dropped to five per day, according to shipping data from Kpler.2
Efforts by mediators, including Qatar and Oman, to reopen the Strait, which carried about a fifth of global oil supplies before the conflict, have stalled.
Highlighting ongoing risks, the UKMTO reported a tanker was struck by three projectiles while leaving the Strait, although no casualties or environmental impact were reported.6
Meanwhile, U.S. stocks fell on Monday, with the Dow Jones down 0.7%, the S&P 500 down 0.3%, and the Nasdaq down 0.1%, despite solid gains for the month, as rising oil prices stoked inflation concerns ahead of the Federal Reserve's September meeting.
“Brent and WTI settled up 2.7% and 2.8% respectively in the previous session, touching their highest since late August. A tanker reported being struck by three projectiles while sailing out of the Strait of Hormuz, and the number of visible commodity vessels transiting the waterway dropped to five per day.”
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