Oil Traders Suspend Shipments Through Strait of Hormuz Amid Regional Tensions

Several major oil trading companies have suspended shipments of crude oil and fuel through the Strait of Hormuz, according to four trade sources, amid ongoing tensions in the region.

The decision follows reports of escalating tensions, prompting concerns about the safety of vessels transiting the critical waterway.

"Our ships will remain in place for several days," a senior executive at a trading firm stated, highlighting the immediate impact on shipping operations.

Oil prices had already risen by approximately 2% on Friday, as traders anticipated potential supply disruptions following inconclusive nuclear talks between the United States and Iran. Brent crude settled at $72.48 a barrel.

Barclays bank had projected Brent crude could rise to around $80 a barrel in the event of a significant supply disruption.

"While it is entirely possible that escalation does not lead to supply disruption and the $3-5/bbl risk premium in oil prices quickly fades, a 1 mb/d supply disruption would add to the doubts about the widely expected surplus and push Brent to $80/bbl," the bank said.