US Oil Rig Count Reaches 15-Month High as Hormuz Attack Halts Shipping

The U.S. oil rig count increased this week, reaching its highest point since May 2025, just as a major disruption in the Middle East roiled global energy transit. These concurrent events highlight both a strengthening of future U.S. production indicators and a sharp rise in geopolitical risk for the global oil supply chain.

US Drilling Activity Increases

Energy services firm Baker Hughes (NYSE: BKR) reported on Friday that U.S. energy companies added one oil rig this week. The total number of active oil rigs now stands at 455, the highest level recorded since May of the previous year.

The weekly rig count is a closely watched metric in the energy sector, as it serves as a key forward-looking indicator of future crude oil production.

Tensions Flare in Strait of Hormuz

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Meanwhile, shipping traffic through the Strait of Hormuz, a critical maritime chokepoint, was reported to be nearly at a standstill on Friday. The disruption follows an attack on Thursday against two vessels owned by the state-run Abu Dhabi National Oil Company.

According to the UAE's official WAM news agency, the government of the United Arab Emirates has characterized the incident as an attack perpetrated by Iran. As a result of the heightened security risk, the volume of vessel transits through the strait this week has fallen below the monthly average.

Market Context

On the U.S. domestic front, refinery operations appear stable. IIR Energy forecasts that 163,000 barrels per day of U.S. refining capacity will be offline for maintenance next week, a figure largely unchanged from the current week's level.