Brent crude futures rose by three cents to $105.72 a barrel by 0819 GMT, after gaining more than $1 earlier in the session. US West Texas Intermediate crude increased by 14 cents to $94.28 a barrel. The relatively modest changes in the latest prices came against a wider backdrop of elevated supply concerns.
Iranian officials told Reuters that the country had begun using different offensive tactics against vessels it considered to be violating its restrictions on passage through the waterway. One official said the approach had changed about 10 days earlier, although officials declined to provide further operational details. The reported strategy has added uncertainty for shipowners and energy traders assessing the risks of transporting oil through the region.
Before the conflict, the Strait of Hormuz carried approximately one-fifth of global oil and liquefied natural gas trade. Restrictions on maritime traffic have since disrupted flows, although some shipments have continued to pass through the route. The extent to which exports can be maintained will remain central to the outlook for energy prices.
Higher crude prices can increase costs across the wider economy. Transport operators, manufacturers, and energy-intensive businesses face higher costs when fuel prices rise, while households may pay more for petrol, electricity, and heating, depending on local pricing structures.
Sustained increases in energy costs could also complicate central banks' efforts to bring inflation under control. If fuel and freight costs feed into broader prices, policymakers may have less room to reduce interest rates, potentially increasing borrowing costs for businesses and consumers.
However, higher market prices do not necessarily indicate an immediate collapse in physical supply. UBS analyst Giovanni Staunovo said regional attacks were supporting prices, while noting that exports had so far held up.
The outlook will depend on the frequency of further attacks, the ability of vessels to navigate the strait safely and any changes in regional military activity. For energy-importing economies, continued disruption would expose the link between maritime security, inflation and the cost of maintaining reliable energy supplies.
