Shell profits double as oil prices rise from Strait of Hormuz disruption

Oil and liquid natural gas shipments through the Strait of Hormuz have faced intermittent disruptions, prompting a noticeable rise in global energy prices. The narrow waterway, which carries roughly 20 percent of the world’s petroleum and a significant share of liquefied natural gas (LNG) exports, has experienced a series of security incidents over the past week, including the temporary seizure of a tanker and reported missile activity near the shipping lanes. By the close of trading on Tuesday, Brent crude futures had climbed to $86 per barrel, while Asian spot LNG prices rose by about 5 percent, reflecting market concerns over the continuity of supply.

Analysts attribute the price pressure to both the immediate reduction in available cargoes and the broader uncertainty surrounding the region’s stability. The International Energy Agency warned that any prolonged blockage could shave several million barrels per day from the global oil market, tightening an already constrained supply landscape. In response, several major shipping firms have rerouted vessels around the Cape of Good Hope, a move that adds transit time and cost. While diplomatic channels remain active, traders are closely monitoring developments, and the current price uptick is expected to persist until the Strait’s traffic normalizes.