Brent up 13% due to slowdown

Brent crude futures on the London exchange rose 13% in May, reaching peak prices of $82 per barrel. The increase was driven by shipping delays in the Strait of Hormuz, where hundreds of oil tankers are currently stranded, and some have already come under fire. According to Alina Lappo, the strait's significance for the global economy stems from the fact that over a quarter of the world's oil production passes through it, and any delays lead to higher prices and turbulence in global supply chains.

Context

The Strait of Hormuz in the Persian Gulf is one of the narrowest and most strategically important maritime routes for energy transportation. The first major blockade occurred in 2020, when geopolitical tensions led to restrictions on shipping.