Rabobank’s Senior Macro Strategist Bas van Geffen notes that concerns over the Middle East and the closure of the Strait of Hormuz have pushed Oil prices higher, with Dated Brent moving above $111. He highlights that Iran’s control over energy flows and China’s diversification of Oil imports could prolong disruptions, keeping upward pressure on Oil in coming days.

Hormuz closure drives Brent higher

"Concerns about the Middle East continued to dictate markets yesterday. The Strait of Hormuz remains closed, and there were no signs that this will change soon. Oil prices rose further."

"Dated Brent jumped 5% on the day to top $111."

"Meanwhile, Iraq and Pakistan have reportedly made deals with Iran to safeguard oil and LNG shipments from the Gulf – underscoring that Iran is able to effectively control the flow of energy through the Strait of Hormuz."

"China has also further diversified its oil imports."

"This may make China more resilient to prolonged disruptions in Hormuz, while it also cuts off more potential income for Iran."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)