Brent tops $90 as US-Iran war disrupts Hormuz Oil supplies

Brent crude prices rose in early trading on Tuesday, reaching their highest level in more than three weeks and moving above $90 a barrel. The US–Iran war continues to create uncertainty in energy markets, pushing prices higher as traders factor in the threat to supplies. Both sides have adopted an increasingly belligerent tone, diminishing hopes of a negotiated settlement and a normalisation of maritime traffic through the Strait of Hormuz. This has contributed to a sharp decline in oil-tanker traffic through this crucial shipping route, which normally carries approximately one-fifth of global oil and LNG supplies. Against this backdrop, and with little realistic prospect of a short-term peace agreement allowing the Strait to reopen fully, there is scope for further price increases. The crisis threatens to continue, and the disruption is now affecting fourth-quarter orders, adding further upward pressure on prices. Investors will continue to monitor developments closely. The longer the current stand-off continues, the greater the potential for further increases in crude prices.