US Petrol Tops $4 as Hormuz Traffic Slumps and Brent Holds Near $88
Updated
Updated · Al Jazeera English · Jul 20
US Petrol Tops $4 as Hormuz Traffic Slumps and Brent Holds Near $88
3 articles · Updated · Al Jazeera English · Jul 20
Summary
$4.00 a gallon marked the US average petrol price on Monday, up from $3.87 a week earlier, extending a second straight weekly increase as Middle East tensions tightened oil flows.
Brent touched $91.42 on Sunday before easing to $88.04, while WTI hit $85.39 intraday and later traded at $82.29 after the US-Iran ceasefire collapsed and Yemen's Houthis declared a naval blockade against Saudi Arabia.
20% of global oil supply normally moves through the Strait of Hormuz, but only 30 vessels crossed between July 17 and 19; LSEG counted just eight ships on Saturday and four on Sunday.
Shipping risks are rising alongside prices: Greece's Dynacom Tankers said two projectiles struck two of its ships near the Omani coast.
Higher energy costs are reviving inflation and rate concerns after last week's CPI showed a 0.4% monthly decline and a 9.5% drop in petrol prices during a brief lull in fighting.