Oil prices experienced significant fluctuations as energy markets weighed the impact of fresh Middle East turmoil against weaker-than-expected economic data.
What happened
The cost of crude oil jumped by as much as 5% before closing down 2% at less than $102 a barrel, while international Brent crude prices swung between $105 and $112 a barrel.
Recent attacks on vessels in the Strait of Hormuz have led to a quadrupling of the cost of chartering a large tanker vessel to transport oil through the strait since September, primarily due to increased safety and insurance costs.
Additionally, weaker-than-expected housing data, including a nearly four-year low in permits for future home construction and a 7% plunge in US pending home sales, raised concerns about a broader economic slowdown and a drop in consumer demand.
