Oil swings as Hormuz attacks hit record; IEA to release diesel reserves

· Energy · Iran · United States

Oil prices whipsawed as attacks on tankers in the Strait of Hormuz hit their highest weekly level since the Iran war began, according to maritime security sources, and a supertanker was chartered from the Gulf Coast to China for $76 million — about ten times the pre-war rate. The White House asked the Pentagon to draw up strike options against Iran that could be executed before the midterms, a report said. IEA members agreed to prioritize the release of diesel stocks. Chevron's CEO warned against an unwise diesel export ban. Asian stocks were poised to fall and emerging-market assets slid amid the oil and dollar swings.

Why it matters：A prolonged disruption in the world's most important oil chokepoint would raise energy costs and inflation globally, with Asian importers most exposed.

Key points

  • Tanker attacks in Hormuz last week were the highest of any week since the Iran war began.
  • A supertanker charter from the US Gulf Coast to China cost $76 million, ten times pre-war levels.
  • IEA members supported releasing reserve oil stocks faster to ease diesel supply fears.

Sources (original reporting)

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