Energy and Oil Sector
Oil prices jumped above $91 a barrel as geopolitical conflicts damaged shipping in the Strait of Hormuz, cutting traffic to 11% of pre-war levels. The spike in crude costs and rising U.S. Treasury yields pushed major U.S. stock indexes lower. Meanwhile, energy firms executed large strategic deals, including Ecopetrol's $1.2 billion Brazilian acquisition and Inox Clean Energy's $627 million purchase of Vena Energy India.
Oil prices climbed for a fourth straight session on Wednesday, pushing Brent crude to $91.79 a barrel and West Texas Intermediate to $85.79. The gains follow the expiration of a temporary U.S.-Iran ceasefire on August 17 and a sharp contraction in shipping traffic through the Strait of Hormuz. President Donald Trump stated that the waterway remained open and that no talks were scheduled with Tehran, contradicting Iranian officials who asserted the strait would stay closed until Washington lifts its port blockade and oil sanctions. Kpler data cited by Reuters showed only six commodity vessels crossed the strait on Tuesday, down from a 10-day average of 11. In response to the blockage, Iraq's cabinet approved alternative export mechanisms running for three months starting September 1, while Chinese shipping firms rerouted tankers away from the region. At the same time, API data showed U.S. crude and distillate inventories fell last week.
An outbound cargo vessel was struck by an unknown projectile in the Strait of Hormuz, damaging its engine room and resulting in a crew casualty as commercial traffic through the crucial waterway sits at a near standstill. Brent crude futures rose 26 cents to $91.28 a barrel, while U.S. West Texas Intermediate gained 37 cents to trade at $85.31 a barrel following the expiration of a 60-day U.S.-Iran ceasefire without a formal extension. President Donald Trump ruled out negotiations to extend the memorandum of understanding with Tehran, and Iranian officials stated the vital trade route would remain closed. Maritime tracking data from Kpler showed that daily vessel transits through the strait have dwindled to single digits, with only three ships navigating the checkpoint on Sunday and Monday. The remaining crew members of the struck vessel received assistance from the Omani Coast Guard near Khasab, Oman, while authorities launched an investigation into the attack.
Ecopetrol completed its approximately $1.2 billion acquisition of a controlling 51% stake in Brazil's Brava Energia. Through its subsidiary Ecopetrol Investimentos do Brasil, the Colombian state-owned energy company combined 116,110,717 shares acquired via a voluntary tender offer on the B3 stock exchange with 120,813,490 shares purchased under a prior April agreement, representing roughly 25% and 26% of Brava's outstanding voting share capital respectively. Ecopetrol Capital AG funded the $1.2 billion transaction through an intercompany loan. The deal adds an asset base that averaged 78,800 boed during the first six months of 2026, with production reaching 84,400 boed in June. Brava reported 459 MMboe of proved reserves and 605 MMboe of proved plus probable reserves as of year-end 2025. For the 12 months ended June 30, 2026, Brava generated $2.34 billion in revenue and $1.05 billion in EBITDA. Ecopetrol stated that the transaction advances its strategy to diversify its hydrocarbons portfolio beyond Colombia.