Oil prices advanced on June 22, with Brent crude pushing above US$81 a barrel and US benchmark crude posting stronger gains as renewed disruptions in the Strait of Hormuz heightened concerns over global supply flows.
According to Reuters, Brent crude rose nearly 1% in early trading, while US West Texas Intermediate crude jumped more than 2%, supported by reports of slower shipping activity through the strategic waterway.
Market sentiment turned more cautious after vessel traffic through the Strait of Hormuz declined sharply, raising fears of potential supply bottlenecks despite ongoing diplomatic engagement between Washington and Tehran.
Investors are closely monitoring developments surrounding the fragile US-Iran peace process, with mixed signals from both sides fuelling uncertainty over the region’s stability and the outlook for energy exports.
The latest gains come after a sharp sell-off last week, when crude prices tumbled on expectations of increased Middle Eastern supply and hopes that sanctions on Iranian oil exports could eventually be eased.
However, fresh concerns over shipping disruptions have shifted attention back to supply security, helping oil recover part of last week’s losses despite indications that major producers in the region are prepared to increase output.
Traders are expected to remain highly sensitive to geopolitical headlines in the coming days, with developments in the Gulf likely to remain the dominant driver of oil market sentiment.
