DHT Holdings Monitors Shipping Risks After Iran Closes Strait of Hormuz; Oil Prices Tick Up
Iran temporarily closed the Strait of Hormuz for live-fire drills, halting passage of 20% of global oil flows and prompting DHT to monitor elevated shipping risks. Concurrent Brent and WTI benchmarks rose to $67.63 and $62.40 per barrel as tanker routes face potential disruption and security premiums.
1. Iran Executes Live-Fire Drill Closing Crucial Waterway
On February 18, Iran conducted live-fire drills that led to a temporary closure of the Strait of Hormuz, a passage responsible for roughly 20% of the world’s oil shipments. The unprecedented halt in vessel traffic has prompted immediate risk assessments by tanker operators.
2. Brent and WTI Benchmarks Edge Up
Benchmark Brent crude increased 0.31% to $67.63 per barrel, while West Texas Intermediate gained 0.22% to $62.40. Traders balanced short-term supply concerns against ongoing nuclear negotiations, keeping oil near two-week lows.
3. DHT Holdings Monitors Elevated Shipping Risks
DHT Holdings has flagged heightened security and route‐diversion risks, preparing for potential charter rate increases and surging insurance costs. The company is evaluating alternative southern detours and adjusting vessel schedules to mitigate disruptions.