WS #15563
Crude oil has surged past $105 per barrel as Houthi attacks on Saudi facilities and Iranian threats to the Strait of Hormuz constrict global supply. The situation is further complicated by Hurricane Isaias, which places 500,000 barrels per day of US Gulf Coast refining capacity at risk. With US strategic petroleum reserves at record lows, the market faces a severe supply-side squeeze that is likely to persist until geopolitical tensions de-escalate or the hurricane's impact is fully assessed.
Energy Supply Shock and Geopolitics
Crude oil has surged past $105 per barrel as Houthi attacks on Saudi facilities and Iranian threats to the Strait of Hormuz constrict global supply. The situation is further complicated by Hurricane Isaias, which places 500,000 barrels per day of US Gulf Coast refining capacity at risk. With US strategic petroleum reserves at record lows, the market faces a severe supply-side squeeze that is likely to persist until geopolitical tensions de-escalate or the hurricane's impact is fully assessed.