Brent Crude Surges Past USD110
As of 0830GMT, international benchmark Brent crude futures were trading at $110.12, while the US benchmark, West Texas Intermediate, was at $94.85. Although prices eased slightly during the day, both benchmarks remained significantly higher than levels seen before the latest escalation in the conflict.
The surge in oil prices coincided with ongoing turmoil in the Middle East, which has disrupted energy markets. The Strait of Hormuz, a crucial passage for global crude and LNG shipments, is under immense strain. The conflict has nearly halted transit through this waterway, which typically handles about one-fifth of the world’s crude oil and LNG supply.
Market pressure persisted amid ambiguous signals from Washington and Tehran, complicating expectations for a short-term de-escalation. This came even after US President Donald Trump extended by 10 days a pause on strikes targeting Iranian energy infrastructure.
Traders remained more concerned about the potential for a prolonged confrontation than the day-to-day diplomatic developments. The main focus continued to be the effect of disrupted flows through the Strait of Hormuz on global oil supply.
The International Energy Agency described the current supply shock as being “more severe than the 1970s oil crises and the Russia-Ukraine gas disruption combined,” while Reuters reported that roughly 11 million barrels per day have been removed from global supply.
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