Global oil markets remain on edge after one of the most turbulent trading weeks in years, with Brent crude hovering near the $100-per-barrel mark as tensions around the Strait of Hormuz intensify.
The international benchmark eased slightly after surging more than 9% in the previous session, while US crude benchmark West Texas Intermediate traded close to $96. The sharp moves reflect growing concerns about supply disruptions as geopolitical tensions escalate in the Middle East.
Market anxiety intensified after Iran's new supreme leader, Mojtaba Khamenei, indicated that Tehran intends to ensure the Strait of Hormuz remains effectively closed. The narrow shipping route between Iran and the Arabian Peninsula is one of the world's most critical energy corridors, handling a substantial share of global oil and liquefied natural gas exports.
Since hostilities began on February 28, tanker traffic through the waterway has slowed dramatically, with shipments of crude, natural gas and refined fuels such as diesel facing severe disruptions.
Global Response to Supply Shock
Security concerns have further increased after the United Kingdom warned that Iran may have begun laying naval mines in the strait, a move that could significantly raise the risks for commercial vessels navigating the route.
The International Energy Agency has described the disruption as the most significant supply shock in the history of the global oil market. In response, member countries have agreed to release emergency reserves in an effort to stabilise prices.
The United States has also taken steps aimed at easing supply constraints. Washington issued a temporary waiver allowing countries to purchase Russian oil that had been loaded before March 12, broadening earlier exemptions that initially applied only to India.
Meanwhile, US officials indicated that naval escorts for tankers passing through the Strait of Hormuz could be deployed if conditions deteriorate further.
Price swings this week have been unusually dramatic. US crude futures have traded within a range of roughly $43, the widest fluctuation since the pandemic-era collapse in 2020. Brent crude has also seen sharp swings of nearly $38 during the same period.
With the conflict approaching its third week and no clear path to de-escalation, energy markets are bracing for continued volatility and the possibility of further supply disruptions that could push oil prices even higher.
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