When markets opened Monday following the US – Israeli strikes on Iran and the escalation of conflict across the region, crude prices reacted immediately. Brent moved higher as traders priced in geopolitical risk around the Strait of Hormuz, the corridor through which roughly one-fifth of global oil supply and a significant share of LNG exports transit each day.
Yet the reaction was initially measured given the scale of the shock. Prices rose modestly at the start of the week, with Brent surging sharply at the open and briefly moving above $82/B before settling near $77-78/B on Monday, as concerns grew over potential disruption to shipping and regional energy infrastructure. As attacks on Gulf energy infrastructure intensified and tanker traffic through the Strait of Hormuz fell dramatically, with many vessels delaying or diverting transit, prices rose further, with Brent moving into the mid-$80s before entering the $90 range by Friday. (CONTINUED - 1743 WORDS)
