Oil Rises as Strait of Hormuz Remains Blocked

Oil rebounded after its biggest one-day drop since April 2020 as the Strait of Hormuz remained largely blocked and Israeli attacks on Lebanon threatened to derail the fragile US–Iran ceasefire. These developments raise near-term upward pressure on oil and commodity prices and increase supply-chain risk for seaborne crude transiting the Hormuz chokepoint.

Analysis

Oil rebounded after its biggest one-day drop since April 2020 as the Strait of Hormuz remained largely blocked and Israeli attacks on Lebanon threatened to derail the fragile US–Iran ceasefire. These developments raise near-term upward pressure on oil and commodity prices and increase supply-chain risk for seaborne crude transiting the Hormuz chokepoint.