Hormuz Tensions Spike Oil Prices to Shock Levels

Escalation of US‑Iran hostilities is choking crude flows through the Strait of Hormuz, sending WTI and gasoline prices to shock‑level highs.

Oil Market’s Sudden Rally

■August WTI crude oil (CLQ26): +3.54 (+4.48%) close, hitting a 5‑week high

■August RBOB gasoline (RBQ26): +0.1080 (+3.29%) close, reaching a 2‑month high

■Seven‑day average oil flow via Hormuz: 9.4 → 5.5 million bpd (Bloomberg calculations using Kpler & Vortexa data)

Geopolitical Strain’s Impact on Supply Chains

■The U.S. signaled a possible expansion of military operations by notifying Israel of additional refueling aircraft

■Iran retaliated by striking U.S. bases in Kuwait, Jordan, and Bahrain; Kuwait reported damage to a desalination and power plant

■The International Maritime Organization warned that transiting Hormuz is currently “too dangerous,” with visible traffic sharply down

■The Wall Street Journal reported the Trump administration’s interest in seizing Kharg Island, Iran’s main oil export terminal

Captain Rıza Deniz: A 40% plunge in Hormuz flows will not only spark a short‑term price shock but also lift tanker demand, bolstering the Baltic Dry Index; this fresh supply shock could reignite global inflationary pressures and trigger an upside bias in freight rates.