Brent Crude Hits Sixty Nine Dollars on Strait of Hormuz Tensions

image-alt-text

Tanker Security

Reports of 'unruly' behavior by Iranian naval forces near the Strait of Hormuz have spooked the shipping market. Any disruption to the 20 million barrels per day that flow through this chokepoint would cause an immediate price shock.

Market Positioning

Managed money net-long positions increased today, suggesting that hedge funds are betting on a further escalation of tensions in the region.