Oil Prices Break Above $105 as New Ship Attacks Occur in Strait of Hormuz

Key Facts

Brent crude prices broke above $105 per barrel following new attacks in the Strait of Hormuz, as Iran released footage showing commandos boarding a cargo ship. Geopolitical tensions escalated further with reports of Tehran's air defenses engaging hostile targets, intensifying concerns over global supply stability. In a significant diplomatic development, the Israel-Lebanon ceasefire was extended for three weeks following a high-level White House meeting aimed at securing the agreement. Despite this regional de-escalation effort, Commerzbank Research maintains that the Strait's potential closure remains the decisive factor for oil prices. Equity markets reacted negatively to the energy spike, with the FTSE 100 dropping 0.8% and Wizz Air falling 3%. Investors are now reassessing $430 million in bearish bets as the situation shifts toward direct military engagement in key maritime corridors.

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