Brent Crude Rises to $91.28 a Barrel as Shipping Disruptions Continue in Strait of Hormuz

Benchmark Brent crude price passed $91 a barrel, reaching $91.28, driven by renewed military strikes in the region and escalating disruptions affecting oil tankers in the Strait of Hormuz.

Oil traders observed a decline in daily cargo volumes passing through the strait over the past two weeks, sparking fears of a supply shortage that could peak with the start of the northern heating season.

OPEC+ countries rushed to reassure markets of their ability to meet production commitments, yet geopolitical headwinds maintained the risk premium in the price and prevented any significant decline.

This price level exerts double pressure on oil-importing economies; it widens trade deficits and inflates government subsidy bills at a time when budgets are tightening. Analysts estimate that every $10 increase in oil prices adds approximately 0.3 percentage points to global inflation and reduces growth by a similar proportion.

What do these terms mean?

Brent Crude: The most prominent price benchmark in international oil pricing, extracted from the North Sea; most global oil contracts are tied directly to it.

Geopolitical Risk Premium: The portion of the oil price reflecting fear of supply disruptions rather than actual oil value; as tensions escalate, this premium increases.

OPEC+: An alliance comprising OPEC countries and allies including Russia and Mexico; its members agree on production levels to influence global oil prices.