Brent Crude oil is experiencing its largest weekly gain since February 2022, driven by escalating tensions after Israel's attack on Iranian nuclear facilities. Prices surged to $74 a barrel, increasing by 7%. Hargreaves Lansdown analyst Derren Nathan warns not only about potential disruptions to Iranian oil exports but also threats to shipping routes in the Strait of Hormuz, vital for global oil transport. Moreover, a significant draw of 3.6 million barrels from U.S. inventories adds to upward price pressures, reflecting heightened demand.
A 3.6-million-barrel draw on US inventories last week, the third consecutive weekly decline, is also providing support for prices on the demand side.
It's not just the outlook for Iranian exports that's a concern but also the potential for disruption to shipping in the Persian Gulf's Strait of Hormuz, a key route for about 20% of global oil flows and an even higher proportion of liquified natural gas haulage.
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