Oil prices climb above $100 amid Hormuz tensions

Brent crude futures rose $1.26, or 1.2%, to $103.17 per barrel by 06:30 GMT, after closing above $100 for the first time in more than two weeks.

Meanwhile, West Texas Intermediate crude rose by $1.20, or 1.3%, to $94.16 per barrel.

Supply concerns drive market sentiment

Prices were supported by ongoing geopolitical tensions and disruptions to shipping through the Strait of Hormuz, a critical route that previously handled around 20% of global daily oil and liquefied natural gas supplies.

Analysts noted that the lack of progress in resolving tensions in the Gulf region continues to reshape expectations in the oil market.

Shipping disruptions intensify

Recent incidents, including Iran’s seizure of vessels attempting to transit the strait and US naval interceptions of Iranian-flagged tankers, have heightened fears of prolonged supply disruptions.

Despite an extended ceasefire announced by Donald Trump, both sides continue to impose restrictions on maritime trade.

US inventory data and exports

Market momentum was also supported by declining US fuel inventories. Gasoline and distillate stockpiles fell more than expected, while crude inventories increased by 1.9 million barrels.

US crude and petroleum product exports rose by 137,000 barrels per day to a record 12.88 million barrels per day, driven by stronger demand from Asian and European buyers.