Oil prices rise as shipping strikes intensify in Gulf and Red Sea

Renewed strikes on shipping routes in the Gulf of Oman and the Red Sea have delivered a fresh double shock to global oil markets, prompting another surge in crude prices. The disruptions, which involve labor actions at key Gulf ports and renewed attacks on vessels transiting the Red Sea, have tightened the supply chain for petroleum products and heightened concerns over the reliability of a region that handles roughly a third of the world’s oil shipments. By the end of the week, benchmark Brent crude had risen above $90 a barrel, while U.S. West Texas Intermediate traded near $86, levels not seen since early 2023, according to data compiled by DW.

Analysts say that the current price rally could be sustained by a confluence of additional factors beyond the shipping disruptions. OPEC+ has signaled a willingness to maintain output cuts into the second half of the year, limiting new supply even as demand rebounds from pandemic lows. Meanwhile, geopolitical tensions in Eastern Europe and the Middle East, coupled with strong economic growth in Asia, are bolstering consumption forecasts. Seasonal demand spikes in the run‑up to the northern‑hemisphere summer, along with limited strategic reserves releases, further constrain market flexibility. If these dynamics persist, oil prices are likely to remain elevated, keeping the sector on alert for continued volatility.