Oil rises 5% and hits $95 after attacks on ships in the Persian Gulf
WHAT HAPPENED
Two tankers were attacked in the Strait of Hormuz and the United States responded with attacks against ships and military facilities in Iran. Brent rose nearly 5% to almost $95 per barrel and remained above $94.
WHY IT MATTERS
Hormuz moves nearly one-fifth of the world's oil. Even if the passage does not close, the risk raises insurance and shipping costs; that’s why crude prices rise. Gas stations, airlines, freight transport, and products shipped by boat or truck feel it first.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, oil is a source of pressure for companies that use a lot of fuel and for daily expenses. If crude stays above $90-95 for several weeks, gasoline, flights, and some freight costs may increase; the effect usually arrives with a delay.
💬 TELL IT LIKE THIS
“Oil does not need to stop flowing to become more expensive: it is enough for it to seem riskier to transport.”