Brent crude reaches $99 as Iran plans Strait of Hormuz exclusion zone

  • Iran plans to announce an exclusion zone for vessels transiting the Strait of Hormuz without permission.
  • Brent crude reached $99 per barrel, a seven-week high, on Tuesday morning.
  • Kpler recorded 10 daily Strait of Hormuz transits on Sunday, versus more than 130 before the war.

Brent crude reached a seven-week high of $99 per barrel Tuesday as Iran planned to announce a maritime exclusion zone outside the Strait of Hormuz for vessels lacking Iranian permission. The move followed U.S. strikes that disabled three Iranian oil tankers and Iranian missile attacks on U.S. warships, neither of which was hit. Traffic through the waterway fell to an average of 10 ships a day on Sunday, far below the pre-war level of 130, according to Kpler data cited by Reuters. Qatar said it was working with China to restart diplomacy aimed at reopening the strait, while Iran said talks with Oman on a temporary safe route had reached their final stage. The six-month conflict has disrupted energy markets, with Brent near $97 for November delivery and West Texas Intermediate above $92 for October delivery. U.S. gasoline averaged about $4.15 a gallon, while Iran raised gasoline prices for consumers exceeding a monthly quota as domestic consumption outpaced production. The conflict has also damaged 27 Iranian airports, killed and displaced people in fighting involving Houthi forces near the Bab al-Mandab Strait, and contributed to strikes in Lebanon and renewed tensions over nuclear inspections. The Global Shipping Group warned that recent crises represent a structural shift in global trade conditions and urged adherence to the U.N. Convention on the Law of the Sea.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.