Oil prices climb as Gulf shipping attacks raise supply worries
Oil futures rose on Thursday amid growing concerns over Middle East supply and a spike in attacks on tankers in the Gulf and the Strait of Hormuz.
On Thursday, Brent crude futures climbed $1.33, reaching $101.53 a barrel, and U.S. West Texas Intermediate rose $1.11 to $89.39, driven by lingering supply anxieties from the Middle East. The market reaction comes as attacks on shipping in the Gulf and the Strait of Hormuz have intensified, with the latest incident involving a tanker north of Qatar struck by multiple projectiles and resulting in casualties. Despite the heightened danger, Gulf producers are maintaining export volumes, accepting the risk of vessel damage.
The International Energy Agency intends to draw additional barrels from its existing 400-million-barrel release plan, rather than tapping new strategic reserves. Meanwhile, U.S. crude stockpiles dropped by 3.2 million barrels to 424.1 million barrels, a larger decline than analysts expected, while diesel inventories slipped slightly, further bolstering prices.
Why it matters
Rising oil prices and shipping threats could tighten global fuel supplies and increase energy costs worldwide.
How this story developed
- Sep 14 US claims Hormuz traffic improving as oil prices surge amid regional attacks
- Sep 21 Fire on the tanker was extinguished after the projectile strike.
- Sep 23 A cargo ship was struck by an unknown projectile, igniting a fire and forcing crew evacuation.
- Sep 24 Saudi Arabia, the UAE and other Gulf producers have rerouted oil through spare pipeline capacity and a U.S.-protected corridor, keeping global supply steady despite higher prices.
- Sep 29 Brent crude rose about 4% to just over $107 a barrel after Donald Trump’s contradictory statements and the US announced the final withdrawal of its forces from Iraq.
- Oct 2 The administration emphasized managing public expectations about a rapid settlement with Iran.
- Oct 3 A second tanker was hit east of Oman, adding to the earlier incident in the strait.
- Oct 5 The G7 announced a release of diesel and crude from emergency reserves.
- Oct 5 A U.S. naval blockade has caused a backlog of hundreds of trucks at the Gürbulak crossing, with waits up to five days.
- Oct 7 The number of reported tanker attacks in the Strait of Hormuz rose to at least nine this October.
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