Brent Oil Surges Above $100 as Strait of Hormuz Crisis Intensifies
Brent crude oil prices climbed above $100 per barrel on Friday, after reports clarified that an Indian tanker had not passed through the Strait of Hormuz as previously believed. Instead, the vessel had departed from Oman, located east of the strait, which has remained closed since the escalation of the U.S.–Israeli conflict with Iran.
Brent crude futures for May delivery rose $1.37, or 1.36%, to $101.83 per barrel by 10:55 a.m. CDT (15:55 GMT), putting the benchmark on track for a weekly gain. Meanwhile, U.S. West Texas Intermediate (WTI) crude for April increased by 53 cents, or 0.55%, to $96.26 per barrel, also heading toward a weekly rise.
Tanker Movement Misinterpreted
Earlier reports suggested that an Indian-flagged oil tanker had successfully passed through the Strait of Hormuz. However, an Indian government official clarified that the vessel was traveling east of the strait, transporting gasoline to Africa.
The misunderstanding briefly suggested that shipping routes through the strategic waterway had reopened. In reality, the Strait of Hormuz remains closed as Iran continues targeting vessels attempting to pass through the narrow channel linking the Persian Gulf and the Gulf of Oman.
Russia Oil Waiver Aims to Stabilize Markets
To ease global energy market pressures, the United States issued a 30-day license allowing countries to purchase Russian oil and petroleum products stranded at sea.
U.S. Treasury Secretary Scott Bessent said the measure aims to stabilize energy markets disrupted by the war involving Iran.
According to Russia’s presidential envoy Kirill Dmitriev, the move affects around 100 million barrels of Russian crude, roughly equivalent to almost one day of global oil production.
Analysts noted that the waiver will not necessarily add new supply to the market but could reduce logistical barriers affecting shipments.
Oil Infrastructure Risks Fuel Market Concerns
Market participants are increasingly worried that the conflict could last longer than initially expected. Analysts warn that severe damage to energy infrastructure in the Middle East could cause lasting disruptions to global oil supplies.
The announcement regarding Russian oil followed a separate decision by the U.S. Department of Energy to release 172 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) in an effort to contain soaring prices.
The move was coordinated with the International Energy Agency (IEA), which announced plans to release a record 400 million barrels from global strategic stockpiles, including the U.S. contribution.
However, analysts say the temporary relief created by the stockpile releases was quickly overshadowed by renewed geopolitical tensions.
Iran Escalates Pressure on Strait of Hormuz
Iran’s newly appointed Supreme Leader Ayatollah Mojtaba Khamenei said the country would continue its resistance and maintain the closure of the Strait of Hormuz as leverage against the United States and Israel.
Security officials in Iraq reported that two fuel tankers were struck by explosive-laden boats in Iraqi waters, which they attributed to Iranian forces. Iraqi authorities later confirmed that the country’s oil ports had halted operations following the incidents.
Meanwhile, U.S. President Donald Trump stated that higher oil prices could bring economic benefits to the United States. However, he emphasized that preventing Iran from acquiring nuclear weapons remains the administration’s top priority.
Oil Prices Hit Highest Levels Since 2022
Both Brent and WTI crude benchmarks surged more than 9% on Thursday, reaching their highest levels since August 2022.
Investment bank Goldman Sachs forecasts Brent crude will average above $100 per barrel in March before potentially easing to around $85 in April, as markets remain volatile amid ongoing geopolitical risks.
Analysts note that Brent crude tends to be more sensitive to geopolitical disruptions than WTI. Europe relies heavily on imported energy supplies, while the United States benefits from strong domestic oil production that helps cushion global supply shocks.
Shipping Risks May Prolong Disruptions
Sources told Reuters that Iran has deployed approximately a dozen naval mines in the Strait of Hormuz, a move that could complicate efforts to reopen the critical maritime corridor.
The strait is one of the most important oil transit routes in the world, carrying roughly one-fifth of global oil supply.
U.S. Treasury Secretary Bessent also said that the U.S. Navy could eventually escort commercial vessels through the strait, potentially alongside an international coalition, once military conditions allow safe passage.
For now, markets remain on edge as geopolitical tensions continue to threaten global energy supplies.
