Renewed anxiety over oil prices followed signs the Iran–US truce was fraying, after President Donald Trump said the US ceasefire with Iran was over. With tanker traffic through the Strait of Hormuz effectively stopped, markets priced in higher risk. US petrol prices edged up to an average of USD 3.80 a gallon, AAA said.
International
-Sathish Raman
Oil markets and shipping firms faced fresh uncertainty on Wednesday after signs that a fragile Iran-US truce was coming apart. Oil prices climbed after President Donald Trump said the US ceasefire with Iran was over. The shift followed Iranian attacks on commercial ships in the Strait of Hormuz and on American sites elsewhere in the Gulf.
Renewed anxiety over oil prices followed signs the Iran–US truce was fraying, after President Donald Trump said the US ceasefire with Iran was over. With tanker traffic through the Strait of Hormuz effectively stopped, markets priced in higher risk. US petrol prices edged up to an average of USD 3.80 a gallon, AAA said.
Rising crude prices raised worries that fuel bills could climb again in the coming weeks. Drivers in many countries had started to see some relief after war-driven price spikes. However, sustained fighting could block oil tankers from using the Persian Gulf route. Markets reacted quickly to the renewed risk around the Strait of Hormuz.
Strait of Hormuz oil shipping risk lifts oil prices
Tanker movement through the Strait of Hormuz largely halted, adding to the sense of danger. “Tanker traffic through the Strait of Hormuz has essentially stopped, which tells you more about risk perception right now than any statement from Washington or Tehran,\” said Jorge Leon of Rystad Energy. Leon added that prices stayed highly sensitive to any escalation near the strait.
Benchmark prices rose to multi-week highs on Wednesday. US crude reached USD 75.80 per barrel, the highest in over two weeks. Brent crude moved close to USD 79 per barrel. That was the strongest level since June 19. Traders treated the strait as a key trigger because it carries major global oil flows.
Iran-US tensions strain Strait of Hormuz oil routes
Traffic data showed some ships still crossed the strait on Tuesday, despite the risks. Kpler verified 41 crossings on Tuesday, up from 36 on Monday. It was unclear if ships moved before or after the strikes. Some vessels stopped broadcasting positions while passing through, complicating any full count of transits.
With the central passage unusable due to mines, ships shifted to side routes. One route runs north through Iranian waters. Another runs south through Omani waters. The three vessels hit on Tuesday appeared to use the Omani route. The danger prompted wider concerns across the Middle East shipping corridor.
Strait of Hormuz oil strikes prompt maritime warnings
A day after the US accused Iran of striking three commercial vessels, Washington also removed Iran’s ability to openly sell crude. The International Maritime Organization criticised the attacks. \”As long as the safety and security of crews cannot be assured, I urge flag states, shipowners, operators and all relevant authorities to avoid exposing seafarers to unnecessary danger by transiting the strait,\” Arsenio Dominguez said Wednesday.
Oil prices and petrol costs linked to Strait of Hormuz oil flows
US petrol prices moved up slightly on Wednesday, AAA data showed. Regular petrol averaged USD 3.80 a gallon, up from USD 3.79 a day earlier. It stayed below the month-ago average of USD 4.16. Crude makes up most of the pump price. Yet consumers may not feel full effects for weeks.
Fuel costs usually lag oil because refineries buy crude ahead of time. Petrol then moves through pipelines and trucks before reaching stations. Retailers also set prices at the pump. To stay competitive, some stations absorb higher costs for a while. This can delay price rises after crude moves higher.
US emergency stockpiles and Strait of Hormuz oil disruptions
To restrain war-driven oil spikes, the US and other countries began releasing emergency stocks in March. Those reserves are limited. The US Strategic Petroleum Reserve held 319.5 million barrels on July 3. That level was last seen in 1983, during the reserve’s early fill period. Analysts said reduced stocks weaken future response options.
\”Unfortunately, the drawdown of strategic stocks means that there is a lot less ammunition in Trumps holster,\” said Michael Lynch of the Energy Policy Research Institute in Amherst, Massachusetts. The comment reflected concern that prolonged disruption could be harder to offset. Traders watched both supply risks and available buffers.
Strait of Hormuz oil uncertainty affects Suez shipping plans
Some analysts expected the ceasefire to remain uneven rather than collapse fully. \”The question is whether the latest developments merely represent a bump in the road or if were emerging from the eye of the storm,\” wrote Ben May of Oxford Economics. Trump called talks a waste of time. Yet Trump also said US negotiators would keep speaking with Iran.
The new doubt over the Strait of Hormuz followed separate shipping adjustments in the region. Maersk and Hapag-Lloyd said on Monday their Gemini Corporation partnership would slowly restart Suez Canal services. Those routes had paused after Red Sea attacks by Yemen’s Houthis. Judah Levine of Freightos said the renewed deterioration could threaten the restart again.
Hapag-Lloyd said on Wednesday it made the joint decision after reviewing security conditions in the Red Sea. The company said contingency plans existed if conditions worsened. For now, energy markets and shippers stayed focused on whether tanker routes reopened safely. Continued instability in the Strait of Hormuz remained central to oil prices and fuel costs.
With inputs from PTI
