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yesterday

Ceasefire Eases Oil Rally as Shipping Risks and Hormuz Threat Loom

Persistent spikes in shipping costs alongside the threat of a Hormuz blockade are maintaining jitters in energy markets.

Treasurer Jim Chalmers urged the ACCC to monitor for complaints of service stations stinging motorists with unfairly high prices. NewsWire/ Dan Peled

Overview

  • The ceasefire brokered June 24 by President Trump has seen early violations from Iran and Israel, fueling concerns over a return to hostilities.
  • Benchmark oil prices reversed recent gains with U.S. WTI crude closing at $64.37 per barrel and Brent at $67.14 after a nearly 14% drop over two days.
  • Shipping rates on key Middle East routes climbed by as much as 76% in June as carriers expedited cargo ahead of potential Strait of Hormuz disruptions.
  • The Strait of Hormuz remains open and currently transports about 20 million barrels of oil daily, but threats of its closure continue to unsettle global flows.
  • A surplus in global oil output driven by OPEC+ and U.S. production has capped price rebounds even as importer nations such as India monitor supply risks.