Global oil prices have broken above $100, arguably due to rising fears over the strait of hormuz.
The market’s nerves are on edge after Trump warned of possible military strikes if Iran doesn’t restore access to the channel. Brent crude climbed 1. 6% to close at $111. 51 a barrel, and WTI jumped 3. 1%, hitting $115. 86.
That spike shows how much risk traders now face – In particular since the strait handles about 20% of global oil movement. A key artery in energy transport, its closure would cripple shipments across Asia and europe.
Iran flat-out refused a U. S. -backed truce, demanding lasting peace instead of temporary calm. With violence still ongoing and attacks on rigs and tankers common, output from Gulf nations has already plunged sharply.
Supply lines remain frayed, so prices stay sticky even when demand dips slightly. The fear is not just short-term – it may last months unless something changes suddenly.
Global markets still tremble under Hormuz disruptions, even as U S. Shale shows signs of stepping in. Oil prices have climbed past the usual 60 to 70-dollar mark where shale begins to turn a profit.
That means some producers might start pulling triggers on new wells soon. But don’t expect instant results – shale fields take months to ramp up after drilling For now, U. S. Output may climb by roughly 240,000 barrels daily, a shift from early warnings of a steep drop.
This small surge comes mostly from wells already drilled but waiting on frack jobs. Still, those extra barrels won’t touch what’s lost through the strait chaos. The world stays exposed to sharp price swings because supply can’t keep pace fast enough.
