Overview
- Renewed U.S. strikes on Iranian targets and attacks by Iran-aligned Houthi forces have forced tankers to change routes in the Red Sea, increasing transit times and operational risk.
- Global benchmarks climbed on the escalation, with Brent futures moving above $96 per barrel and U.S. WTI near $88 per barrel as markets factored in higher shipping costs.
- Attacks on vessels near the Black Sea prompted the Caspian Pipeline Consortium to stop receiving Kazakhstan crude, removing a key source of export loadings.
- American Petroleum Institute data showed U.S. crude and distillate stocks rose while gasoline inventories fell, leaving a mixed supply picture that adds to price sensitivity.
- Higher insurance rates, longer voyages via the Suez Canal, and the threat of a Houthi-declared maritime blockade raise the risk of regional supply disruptions and higher costs for refiners and consumers.