Crude oil prices could surge after several major oil companies suspended shipments through the Strait of Hormuz amid escalating tensions involving Iran, United States, and Israel on Saturday.
The Strait of Hormuz is the primary maritime corridor linking the Persian Gulf to the Indian Ocean, making it one of the world’s most strategic oil transit routes.
Rising hostilities have sparked concerns over a potential closure of the waterway, which would cause significant disruptions to the global crude oil market.
According to Reuters, multiple sources confirmed that several major oil firms have halted cargo movements through the Strait of Hormuz.
“Several major oil companies suspend oil shipments through the Strait of Hormuz,” Reuters quoted sources as saying.
“Our ships will stay put for several days,” a top executive at a major trading desk told the news agency.
At the time of filing, Brent crude traded at $72.87 per barrel, while West Texas Intermediate (WTI) stood at $67.02 per barrel. Nigeria’s Bonny Light crude was priced at $78.62 per barrel.
The development follows a coordinated military strike on Iran by US and Israeli forces on Saturday. US President Donald Trump confirmed the attack and warned Tehran to surrender or face severe consequences.
In retaliation, Iran launched strikes targeting Israel and US military bases across five Middle Eastern countries.
Saudi Arabia has since vowed to resist any form of aggression as tensions continue to rise across the region.