The global energy market is entering a new phase of logistical and geopolitical instability.

The global energy market is entering a new phase of logistical and geopolitical instability.

After recovering substantially during September, crude flows through the Strait of Hormuz have deteriorated again following intensified tanker attacks. Meanwhile, Saudi Arabia is restructuring its export infrastructure, tanker freight costs continue to rise, and physical crude buyers are paying substantial premiums for delivered cargoes. Brent climbed to approximately $106.79/bbl on October 12, while WTI reached $93.54/bbl, supported by renewed attacks on Saudi Arabia and commercial shipping.

Three developments define this week's market:

• Hormuz crude flows fell 27% from their recent wartime peak as tanker security deteriorated.