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Oil rallies as Hormuz and tanker risks drive renewed price jump

Rabobank said oil rose 9% ahead of US CPI and Fed Chair Warsh testimony, then added another 2.5% to about $85 as Hormuz-related disruption risks increased.

Reported · Written up by our desk · Energy

Rabobank analyst Michael Every, cited by FXStreet, pointed to a sharp jump in oil prices tied to rising risks around the Strait of Hormuz and threats to key east to west supply routes.

In Rabobank's view, the rally was fueled by escalating regional tensions, US-imposed toll proposals, Iranian attacks on tankers, and renewed Houthi strikes that could disrupt shipping.

FXStreet reported that oil surged 9% the day before US CPI, which was expected to moderate, and then climbed another 2.5% to around $85 at the time of writing.

The report also noted the timing of the move with the upcoming US inflation release and Fed Chair Warsh’s first testimony to Congress, both of which can influence broader rate expectations and market risk appetite.

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