On 11 June 2026, Brent crude futures rose 1.70 percent to $94.68 per barrel and WTI gained 1.98 percent to $91.81, after Iran announced the closure of the Strait of Hormuz to all maritime traffic — including oil tankers and commercial vessels — following a fresh wave of U.S. strikes on Iranian targets. Earlier in the same session, U.S. crude had briefly traded more than $3 higher, reflecting how quickly sentiment shifted once the closure was confirmed.
The supply picture had already been tightening before Thursday's move. U.S. Energy Information Administration data released on Wednesday showed American crude stockpiles fell by 7.2 million barrels to 426.5 million barrels in the week ended 5 June — roughly double what analysts had forecast. Cumulative U.S. inventory drawdowns since the Iran conflict began on 28 February have now reached 79 million barrels, as American producers worked to compensate for Hormuz-related supply disruptions. Separately, the U.S. government reported that over 100 million barrels of crude had transited the strait under American military escort.
What this means for our clients
For founders relocating to or operating from the UAE, sustained oil price volatility has several practical dimensions. Energy-intensive businesses — logistics, manufacturing, data centres — may face higher input costs if elevated oil prices feed through to local utility and fuel pricing. On the macro side, U.S. consumer inflation was already running at 4.2 percent in May; if energy prices remain elevated, central banks may keep interest rates higher for longer, which typically affects borrowing costs and USD-denominated financing that many UAE businesses rely on.
For companies with supply chains that move goods through the Gulf, the effective closure of Hormuz — even partially or intermittently — warrants a review of shipping routes, insurance premiums, and contractual force-majeure clauses. Free zone businesses engaged in re-export or trading should pay particular attention to how their freight forwarders are routing cargo and whether their cost models still hold under current conditions.
We are monitoring how this situation develops and its downstream effects on UAE business costs and banking conditions. If you would like to discuss how the current environment affects your corporate structure or operational planning, we invite you to book a consultation with the Sirius team — or read the full source article at Economy Middle East: https://economymiddleeast.com/news/oil-prices-rise-over-1-to-94-68-as-hormuz-tensions-intensify/