Oil rises 4% to $104 due to attacks on ships near Hormuz
WHAT HAPPENED
Oil rose up to 4.76%: Brent reached near $104 per barrel and WTI hovered around $91-92. Influenced by attacks on ten ships near Hormuz, a hurricane in the Gulf of Mexico, and lower expected supply.
WHY IT MATTERS
Hormuz is a key route for global oil. If attacks continue, sending crude may become more difficult and expensive. Gasoline, freight, flights, and transported products feel the impact first. The peso also weakened to around 18.20 per dollar.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, oil can temporarily impact energy, transportation, and consumer companies, in addition to inflation. At home, a 4% increase would add about 4 pesos to every 100 pesos spent weekly on gasoline, if fully passed on to the final price.
💬 TELL IT LIKE THIS
“When oil rises due to a threatened route, it first makes gasoline more expensive and then can pressure the price of almost everything that travels.”