Oil prices rose sharply Sunday evening as the US and Iran engaged in retaliatory strikes, contesting control of the vital Strait of Hormuz. US crude futures climbed 4.1% to $74.33, while Brent gained 3.88% to $78.96 amid escalating military actions.
Oil prices surged as the US and Iran engaged in strikes around the Strait of Hormuz. US crude futures rose 3.4% to $73.87 and Brent futures gained 3.5% to $78.67 amid escalating conflict over the vital energy trade route.
Ship traffic through the Strait of Hormuz has halved to 54 vessels on June 25, down from 100-120 daily, due to security restrictions following the US-Iran conflict, according to TASS calculations.
Analysts predict ship traffic through the Strait of Hormuz could reach nearly 50% of prewar levels within a month if a U.S.-Iran deal is implemented. The deal, expected Friday, would open the strait and lift a U.S. naval blockade on Iran, potentially allowing 40 ships daily compared to 100 before conflict.
Chinese traders are exploring transcontinental freight links across Eurasia as a more reliable alternative to shipping routes through the Strait of Hormuz, which continue to face disruptions. Rail capacity is in high demand, with May slots fully booked.
Ship traffic through the Strait of Hormuz remained very light Wednesday, the first day after President Trump extended the ceasefire with Iran. At least six ships transited including three oil tankers, compared to normal levels of more than 100 daily before the war. Iran's Revolutionary Guard seized two container ships for crossing without authorization, while the U.S. maintains its blockade of Iranian ports. The security situation remains dangerous with a cargo ship fired upon Wednesday and another attacked Tuesday causing heavy bridge damage.
Commercial ship traffic through the Strait of Hormuz dropped to near-zero after attacks on vessels over the weekend. At least 20 ships transited Saturday including an oil tanker carrying 2 million barrels of Saudi crude, but traffic halted Sunday. Iran declared the strait open Friday in response to a U.S.-brokered Lebanon ceasefire, then closed it Saturday after Trump refused to lift Iran's port blockade. The U.S. Navy fired on an Iranian cargo ship Sunday in the Gulf of Oman, with Marines taking control. Oil prices rose about 6% Monday.
The reduction in ship traffic through the Strait of Hormuz has had an outsize impact on global jet fuel supplies. Prices have doubled.
