Iran Hormuz Attack Spree Starts Choking Oil Flows (Again), UBS Warns

What happened: Iranian drone attacks on commercial ships in the Strait of Hormuz continued, with 24 attacks reported this month and two Emirati container ships struck and sunk in the past 24 hours. Key numbers: Crude and product flows out of the Gulf of Oman fell to 9.1 million barrels a day; Why it matters: UBS reports a clear trend of declining flows since early October, with attacks also reported in Saudi Arabia. Longer-dated Brent futures are repricing higher while front-month crude stays tepid. The IEA warned the global diesel squeeze will likely persist into the first half of 2027.

Iranian drone attacks on commercial ships in the Strait of Hormuz continued, with 24 attacks reported this month and two Emirati container ships struck and sunk in the past 24 hours.

UBS reports a clear trend of declining flows since early October, with attacks also reported in Saudi Arabia. Longer-dated Brent futures are repricing higher while front-month crude stays tepid. The IEA warned the global diesel squeeze will likely persist into the first half of 2027.