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Hormuz and Bab el-Mandeb disruptions lift oil prices, $100 eyed
OilPrice says ICE Brent and WTI gained about $10 per barrel on the week, while longer shipping routes and reduced transits raise transport costs.
Oil prices jumped this week as disruptions to the Strait of Hormuz and the Bab el-Mandeb tightened global crude flows and increased transportation costs, according to OilPrice.
The outlet said both ICE Brent and WTI gained roughly $10 per barrel over the week, and it pointed to the dramatic decline in Hormuz transits as a key concern for oil markets.
OilPrice added that while vessels could technically bypass the Bab el-Mandeb via the Suez Canal, doing so would mean longer routes and higher costs, which may keep upward pressure on prices.
The story also cited OPEC+ expectations for an August 2 meeting where September output targets may be raised by another 188,000 bpd, even as Red Sea security threats and US-Iran tensions continue to disrupt shipping.
Latest closeWTI crude $92.23 ▲6.2%|Brent $100.54 ▲6.9%