(May 13): Oil was steady as the conflict in the Middle East drags on and keeps the vital Strait of Hormuz effectively closed, with shipments from Iran’s main export terminal appearing to come to a standstill.
West Texas Intermediate futures traded near US$102 after rising more than 4% in the previous session. Brent crude closed above US$107. There were no ocean-going tankers observed at Iran’s Kharg Island over the past several days, according to satellite images, the first sign of a prolonged halt since the start of the 10-week war that’s upended global markets.
The Strait of Hormuz has been effectively shut since hostilities began, with the US implementing a blockade of Iranian ports in mid-April, adding to a sticking point in diplomatic efforts to end the conflict. Flows of crude, natural gas and fuels have been choked off, stoking concerns about an inflation crisis.
US President Donald Trump is meeting his Chinese counterpart Xi Jinping in Beijing this week, and he told reporters on Tuesday that trade talks would be prioritized, downplaying the attention they would devote to the war. He added that, “we have Iran very much under control.”
Still, the war is likely to heap pressure on Trump domestically after fresh US data on Tuesday underscored how the conflict is reigniting inflation. American gasoline prices have also surged to the highest level since 2022, and will be a key talking point ahead of crucial midterm elections in November.
Uploaded by Isabelle Francis
