Brent Crude Stays Above $100 As Strait Of Hormuz Uncertainty Keeps Oil Markets On Edge

Brent crude prices hovered around the $100-per-barrel mark on Wednesday, as concerns over the reopening of the Strait of Hormuz persisted amid the US-Iran conflict. The benchmark oil price climbed 0.58% to $103.20 a barrel, while West Texas Intermediate (WTI) crude slipped 0.19% to $89.55 a barrel, according to Bloomberg data. Oil prices plummeted the previous day following reports of a partial recovery in Saudi Arabia's crude exports from Red Sea terminals, following an attack on a major pipeline earlier this month.

Saudi Arabia resumed operations at its Yanbu and Muajjiz terminals, with satellite imagery revealing a significant turnaround in operations over the weekend. Nine tankers loaded approximately 12.5 million barrels of crude at Yanbu between Saturday and Monday, indicating a near full capacity resumption of exports. The Red Sea pipeline has since been operational at around 3.5 million barrels per day, roughly one-third of its maximum potential output.

The Strait of Hormuz, a crucial shipping lane for global oil trade, remains a focal point for oil markets as the US and Iran negotiate a resolution to their protracted conflict. Iran suggested reopening the waterway within a week if the US agreed to its terms, but President Trump declined the offer, leaving shipping through the route uncertain.

Despite tensions, oil flows through the Strait of Hormuz have partially returned to normal. According to Kpler data, average shipments through the waterway reached 13.2 million barrels per day over the past week, roughly 77% of the 17 million barrels per day pre-conflict. The US continues to safeguard tankers from Gulf allies while imposing restrictions on Iranian oil exports, further heightening uncertainty in global energy markets.