Global oil prices extend move over $90 after report of two tankers struck in Hormuz

Global oil prices have pushed past $90 per barrel, driven by concerns over supply disruptions in the Middle East. The recent incident involving two tankers being struck in the Strait of Hormuz has reignited fears of potential supply chain disruptions in the region. This waterway is a critical passage for oil shipments, with approximately 20% of the world's crude oil and oil products flowing through it.

The increase in oil prices to their highest levels in nearly two weeks reflects the market's sensitivity to geopolitical events in oil-producing regions. The Strait of Hormuz has been a focal point of tensions in the past, with previous incidents leading to brief spikes in oil prices. The current price movement is also influenced by existing supply constraints and production cuts by major oil-producing countries.

Traders and investors will be closely watching for further developments in the region, as well as any official responses from major oil producers and consumers. The next key event to watch will be the release of US inventory data, which could provide further insight into current supply and demand dynamics. Additionally, any updates on potential negotiations between major oil-producing countries and the ongoing situation in the Strait of Hormuz will be crucial in determining the trajectory of oil prices in the near term.

Originally reported by marketwatch.com. Trade-News adds analysis for finance & markets readers.