Red Sea Crisis: Iran-U.S. Energy War Could Push Oil Prices to $100

Oil prices rose over 1% this week as concerns over Middle East energy supplies increased after Iran threatened to close the Red Sea oil route. Brent crude futures reached $85.83, while WTI hit $80.54.

'Bab el-Mandeb Carries 7% of Global Oil Demand'

June data shows 7.4 million barrels per day transited Bab el-Mandeb, accounting for 7% of global oil output, up from 4.2 million bpd last year.

'Simultaneous Disruptions Would Amplify Supply Chain Stress'

■Closures of Hormuz and Bab el-Mandeb could severely strain global supply chains

■Tanker capacity constraints are expected to rise

■Insurance premiums may increase significantly

'War Adds New Front to Energy Crisis'

Iran's threat to halt regional exports comes after the U.S. reimposed a naval blockade.

Markets may expect longer-term trends above $80, but the 7% of global oil carried by the Red Sea could push prices to $90-$95 in the short term.

Wednesday saw only 7 tankers pass through the Strait of Hormuz, down 45% from the previous day. Oxford Economics forecasts prices will remain above $80 for several quarters.