The price of Brent oil rose above the 100-dollar per barrel mark this Wednesday. The crude was briefly traded at $100.19, a value that had not been reached since the end of May.
The rise in oil prices was driven by the worsening of the conflict in the Strait of Hormuz, a region of crucial strategic importance for global energy trade. The geopolitical tension in the area caused investors to react with risk aversion, driving up crude prices.
The Strait of Hormuz is one of the most important oil shipping routes in the world, through which a significant fraction of globally exported oil passes. Any threat to security in that region has a direct impact on international energy markets.
Markets are now closely monitoring the evolution of the situation in the Strait of Hormuz, with analysts warning of the possibility of new volatility in oil prices should the conflict worsen in the coming weeks.
