Oil prices surge as attacks disrupt Strait of Hormuz traffic

Summarised from 2 outlets · Updated 8 Oct, 15:37 · Archive

Oil prices rose sharply after attacks on tankers in the Strait of Hormuz caused traffic to fall to its lowest level since July.

Oil prices surged on Thursday after attacks on tankers in the Strait of Hormuz caused traffic through the vital waterway to fall sharply. The New York Post reports that just seven commodity vessels passed through the strait on Tuesday, marking the lowest total since 23 July. Attacks on tankers reached their highest level since the start of the war, according to data analytics firm Kpler.

Brent crude oil futures rose 4.3% to $104.54 a barrel, on track for its highest closing price in weeks, while West Texas Intermediate crude increased 4.3% to $92.09. Treasury yields also climbed, with the 10-year yield rising to 5.294%, reversing the previous day's declines. Stock markets fell in response, with the Dow Jones Industrial Average dropping 95 points and the S&P 500 and Nasdaq tumbling 0.4% and 0.6% respectively.

The disruption follows reports that the United States had partially restored traffic through the Persian Gulf, with sailors being offered as much as $25,000 per trip. The New York Post reports that Tehran responded by ramping up attacks on commercial vessels. National average gasoline prices have remained above $4 a gallon, while diesel has soared higher than $6 a gallon. Production off the US Gulf Coast was also forced to slash output due to an intensifying hurricane, further restricting supply.

How it is being reported

• Oil prices jump 5%, pushing Treasury yields higher and stocks lower as Iranian attacks disrupt tanker trafficOn Tuesday, just seven commodity vessels passed through the strait, marking the lowest total since July 23 as attacks on tankers reached their highest level since the start of the war, according to data analytics firm Kpler.New York Post · 8 Oct, 14:55
• Oil prices jump on tanker attack and slowing flows through Strait of HormuzTransit through vital waterway rose close to 90% of prewar levels last month but has since fallen sharplyFinancial Times · 8 Oct, 11:46

In this story: Iran · Strait of Hormuz · United States · Kpler · Trump

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