Conflicts in the Strait of Hormuz and the Rise in Oil Prices
As escalating tension in the Middle East and refinery attacks trigger supply concerns, the barrel price of Brent crude has hit a six-week high.
Climbing conflicts between the US and Iran around the Strait of Hormuz and an attack on a refinery in Saudi Arabia have heightened supply disruption concerns in global oil markets, driving prices upward.
The Rise of Brent Crude
Brent crude futures increased by 1.2 percent per barrel on the first trading day of the week, reaching $97.47.
Seeing $97.93 during the day, Brent crude reached its highest level recorded since July 24.
Refinery Attack in Saudi Arabia
According to information reported by the Financial Times, the Jazan oil refinery belonging to Saudi Aramco in Saudi Arabia was targeted on Monday.
Earlier, reports had emerged in the public domain that a Saudi-flagged tanker was attacked by Iran.
Military Moves in the Region
The US Central Command announced that three Iranian oil tankers were targeted in operations carried out on Saturday.
The Islamic Revolutionary Guard Corps of Iran announced on the same day that they struck tankers navigating unauthorized routes in the Strait of Hormuz and vessels with US ties.
Passage of Commercial Vessels
According to Kpler data systems, the average daily number of commercial vessels passing through the Strait of Hormuz has experienced a sharp decline over the last ten days.
This figure has dropped to the level of ten vessels, the lowest rate seen since May.
Market Expectations
Financial institution Goldman Sachs estimates that oil prices could climb to $120 if attacks on vessels continue.
On the other hand, Mohsen Rezaei, Secretary of Iran's Supreme National Security Council, stated that a restricted zone outside the Strait of Hormuz will soon be declared.