Crude prices climb as Hormuz traffic falls to three-week low

BlockBeats reports that international oil prices extended gains on July 18, with Brent rising to $86.75 and WTI to $82.33, after both had previously dipped to around the $70 level. Shipping data from market intelligence firm Kpler showed weaker activity through the Strait of Hormuz on July 16. The confirmed number of vessels transiting the chokepoint fell to eight, the lowest in nearly three weeks. Seven of the eight ships took the northern corridor along Iran's coastline, underscoring a growing concentration on that route as companies reassess regional security, crew safety and insurance exposure. Crude futures posted a double-digit gain this week. Markets are also factoring in the risk that Yemen's Houthi forces could move to disrupt Red Sea shipping. In a scenario where the Strait of Hormuz is closed, Saudi Arabia has been redirecting crude exports via the Red Sea. Barclays analyst Amarpreet Singh said in a note that with inventories at their lowest levels in years and most strategic petroleum reserve releases already completed, renewed tensions around the strait's "red line" are resurfacing, creating meaningful upside risk for energy prices. He added that the market remains too complacent about the potential impact on inventories.