German Chancellor Merz Says Oil Prices Could Rise and Backs Hormuz Mission

Oil prices climbed to WTI $99.7 and Brent $97.6 as shipping through the Strait of Hormuz remained largely frozen, while an attack on Saudi Arabia’s East-West pipeline cut capacity by about 700,000 barrels per day.

Summary

Oil prices rose, with WTI at $99.7 and Brent at $97.6, as shipping through the Strait of Hormuz remained largely frozen. The disruption was compounded by an attack attributed to Iran on Saudi Arabia’s East-West pipeline, which reduced capacity by about 700,000 barrels per day ahead of planned U.S.-Iran talks this weekend. The update adds concrete market and supply figures to the broader risk context previously outlined by German Chancellor Merz regarding Hormuz-related energy pressures.

Terms & Concepts
  • Strait of Hormuz: A key oil transit chokepoint connecting the Persian Gulf to global markets, where disruptions can quickly affect crude prices and supply expectations.
  • WTI: West Texas Intermediate, a major U.S. crude oil benchmark used to price and track oil market movements.
  • Brent: A global crude oil benchmark widely used to price international oil supplies, especially those traded outside the United States.