U.S. crude oil prices surged again toward the $100-per-barrel mark this week amid persistent Middle East tensions and the effective closure of the Strait of Hormuz. West Texas Intermediate traded near $97 to $99 on Friday, while Brent crude exceeded $104 in early Asian trading.
The U.S.-Israel war with Iran, which began with strikes on Feb. 28, has disrupted shipping through the strait, which normally handles about one-fifth of global oil supplies. Prices spiked above $100 earlier in the conflict before moderating slightly on hopes of a diplomatic breakthrough. Markets remain volatile as talks proceed without a firm deal.
On Wednesday, WTI briefly reached an intraday high of $102.66 after Iran’s supreme leader issued a directive that near-weapons-grade uranium should not be sent abroad, complicating negotiations. Prices later retreated on reports of progress in U.S.-Iran talks. July WTI settled down $1.91 at $96.35 on Thursday.
Analysts at Morgan Stanley described the market as in a race against time, warning that cushioning from U.S. exports and softer Chinese demand may not last if the strait stays closed into June. Saudi Aramco’s CEO said disruptions could delay stability until 2027. Rising fuel costs have weighed on consumer sentiment and corporate earnings.
Brent crude futures for July delivery rose to $104.52 in early Asian trade on Friday while gasoline and heating oil futures also advanced. Bloomberg Intelligence survey data showed oil market participants increasingly see crude capped near $100 per barrel over the next year as demand adjusts to supply losses.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://www.schwab.com/learn/story/stock-market-update-open