Oil Swing Tests Global Energy Nerves

Global oil markets remain volatile as tensions between the U.S. and Iran disrupt confidence in Middle East supply routes. According to Bloomberg, West Texas Intermediate steadied below $75 per barrel after surging about 11% over two sessions, highlighting sharp short-term swings driven by geopolitical risk.

The Strait of Hormuz, which handles roughly 20% of global oil transit, remains the focal point. Reports of halted tanker traffic, rerouted vessels, and attacks near key Saudi facilities have intensified supply concerns. Saudi Arabia is diverting shipments toward the Red Sea, while storage facilities are reportedly nearing capacity, adding to uncertainty.

Insurance challenges and proposed U.S. naval escorts have yet to fully reassure markets, prolonging volatility. Meanwhile, refined fuel prices—including diesel and jet fuel—have jumped, raising concerns about renewed inflation pressure.

U.S. crude inventories rose by about 3.5 million barrels, offering temporary relief. However, analysts warn that prolonged disruption in Hormuz could push oil into a higher trading range in the coming months.

For now, markets are balancing supply fears against hopes of stabilization. Until tanker flows normalize, oil price swings are likely to remain a key driver of global financial sentiment.