Texas oil closes higher driven by geopolitical tension in the Strait of Hormuz
The energy market closed the week with a notable rebound in the value of West Texas Intermediate (WTI) crude. The benchmark crude in the United States recorded an increase of 1.4%, settling at 82.40 dollars per barrel at the end of Friday’s session. This movement represents a gain of 1.15 dollars compared to the previous day, accumulating a weekly appreciation of 6%.
The upward trend responds directly to the uncertainty derived from the persistent conflict between the United States and Iran, which keeps the stability of the Strait of Hormuz in suspense. The lack of progress in negotiations and the disruption of regular maritime traffic in this strategic area continue to push prices upward.
Impact on maritime flow and official statements
The landscape has become complicated following reports of recent attacks against two vessels belonging to the Emirati oil company ADNOC while they were navigating through the Strait of Hormuz. Although no casualties were recorded in this specific event, the situation has heightened tensions in the region. Since the start of the conflict on February 28th, at least 18 attacks against vessels of the same company have been recorded, leaving a regrettable toll of one dead and around twenty injured.
US authorities have reaffirmed their stance of imposing a continuous blockade and economic isolation, warning that surveillance over the Strait of Hormuz will be maintained indefinitely in response to hostile actions attributed to Tehran.
Energy market projections
- Constant volatility: The market continues to react to the low frequency of freighters managing to cross the strait, keeping supply under pressure.
- Global demand: The International Energy Agency (IEA) has adjusted its forecasts, anticipating that global crude demand will fall more than initially projected this year due to the direct impact caused by the closure of this key trade route.
Although the Government of the United Arab Emirates has directly pointed to Iran for these acts of hostility, the Iranian Government has not issued an official response so far, leaving the stage open to greater volatility in the coming trading days.
