#CrudeOilPriceRose

The recent surge in crude oil prices, with Brent Crude climbing above $109 and WTI nearing $97, reflects a market gripped by the geopolitical deadlock in the Middle East. While a fragile ceasefire has held since early April, the Strait of Hormuz remains effectively shut, reducing traffic to near zero. This closure has eliminated approximately one-fifth of the world’s oil and LNG flows, creating an unprecedented supply shock that has driven prices up by over 60% since the start of 2026.
Prices have found renewed strength as the U.S. government expresses skepticism toward Iran’s latest proposal. Although the offer to reopen the waterway initially calmed nerves, the insistence by Washington on immediate nuclear dismantlement—a condition Iran has pushed to a later phase—suggests a prolonged standoff. With Iran facing critical storage constraints and the U.S. managing domestic inflation ahead of midterms, the risk premium remains high, keeping oil on a volatile upward trajectory.