Brent: Hormuz tensions keep prices supported above $90 - ING
ING analysts Warren Patterson and Ewa Manthey note that oil prices, including ICE Brent, started the week stronger after US strikes on Iran raised concerns over Persian Gulf supply.
ING analysts Warren Patterson and Ewa Manthey report that oil prices, including ICE Brent, began the week stronger due to concerns over Persian Gulf supply after US strikes on Iran. The Strait of Hormuz's flow and Russia's extended diesel export ban are key factors supporting the oil market. Oil started the week above US$90/bbl after the first US-Iran military strikes in a month, with ICE Brent momentarily surpassing this level in early Asia trading.
The main concern is whether further strikes will occur and if shippers will hesitate to navigate the Strait of Hormuz. Oil producers have become more comfortable sending crude through the critical chokepoint in recent weeks, with 6-8 million barrels per day transiting the strait, although an average of 5 million b/d is assumed. Russia's extension of its diesel export ban until the end of September 2026 will add to global supply stress. The market is moving toward stronger demand.
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