WTI Surges Above Brent as Hormuz Disruption Reshapes Oil Market

WTI crude oil surged sharply on Thursday, reaching $111.29 per barrel, while Brent was trading at $107.57. This shift happened as the market responded to ongoing disruptions around the Strait of Hormuz. In an unusual turn, WTI prices surpassed Brent amid supply concerns.

Usually, Brent commands a premium because it reflects global oil flows by sea and reacts quickly to supply shocks. This change suggests the market now values oil that is more accessible immediately and doesn’t rely on routes through the Strait.

Part of the price gap comes from timing differences in contracts. WTI is priced for May delivery, while Brent has moved to June. Still, the bigger trend points to tighter supplies in the near term and higher demand for oil that can be shipped without risks related to the Strait.

The Strait of Hormuz accounts for about 20% of global oil shipments. With tanker traffic reduced and shipments disrupted, traders are reassessing which supplies are realistically available. This has given WTI what’s being called a security premium.

US President Donald Trump said the US would respond “extremely hard” against Iran within weeks but didn’t provide clear details on reopening the Strait. His remarks pushed oil prices up more than 10%, as markets expected longer-lasting disruptions. Later, reports from IRNA indicated Iran is working with Oman on monitoring transit, which eased prices slightly.

Brent still reflects geopolitical risks but is more tied to sea-borne trade. When shipping routes are constrained, Brent becomes less reliable for showing immediate supply conditions. WTI, reflecting US crude, can still move domestically and through export routes.

Other accessible crude grades also saw gains. For example, Murban crude rose nearly 10%, revealing strong demand for oil outside the affected area. The widening gap between WTI and Brent highlights this change in market focus.

In futures trading, US WTI for May went up about 10% to $110.22, while Brent for June increased over 6% to $107.35. This followed President Trump’s address, where he said the conflict wouldn't last long but left options open for further action.

Currently, the market is balancing two things. Disruptions remain, restricting tanker movement through the Strait, but early talks are under way to manage transit and reduce tensions.

European officials are also exploring a coalition to restore flows through the Strait, though nothing is finalized yet. For now, the market reacts more to existing supply limits than to potential future solutions.

From a technical perspective, the XTI/USDT hourly chart shows an uptrend, with higher highs and lows since late March when prices were near 82. The recent jump above the 106–108 range confirms strong bullish momentum.

The price is now testing a resistance zone of 112–118, where it has faced selling pressure before. This zone might trigger profit-taking.

Momentum remains positive but has slowed a bit. There’s no clear sign of a reversal yet, just a pause after the recent rally.

As long as prices stay above 106, the uptrend should continue. A clear break above 118 could push prices higher.

If prices get pushed down from this resistance, a pullback to 106–108 seems likely, and that level will be important for the next move.

Falling below 106 could weaken the trend and open the way for a drop toward 100 or even 96.

The best strategy is to avoid buying at resistance. It’s wiser to wait for a confirmed breakout and retest above 113–115 or look for buying chances on dips near 106–108.

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