Global oil markets could remain physically tight for months even if a diplomatic resolution to the Iran war is reached soon, according to Kojo Orgle, oil, gas and NGL analyst at ICIS, who said prolonged disruptions tied to the Strait of Hormuz are increasingly pressuring inventories, shipping flows and refinery supply chains.
Oil surged to the highest since June 2022, with no end in sight to the US-Iran conflict or choked-off energy flows through the Strait of Hormuz, heightening concerns over a rapidly shrinking global supply cushion.
The United Arab Emirates will leave OPEC and its wider alliance, OPEC+, dealing a blow to the group and its leader Saudi Arabia as the global oil industry grapples with the massive supply disruption caused by the Iran war.
Norway’s crude oil export earnings surged 67.9% year-on-year in March to a record 57.4 billion kroner ($6.1 billion), primarily driven by soaring global energy prices following the outbreak of the Iran war and the subsequent closure of the Strait of Hormuz. Oil prices averaged 1,014 kroner ($107.52) per barrel in March, the highest monthly average since September 2023.
OPEC crude production registered a record plunge last month as conflict in the Middle East throttled exports from key members, the group’s data showed.
White House Press Secretary Karoline Leavitt read a statement from President Trump saying he’s weighing his options based on the potential for diplomacy with Tehran. The President’s position amounts to maybe peace, maybe war, maybe nothing. In the meantime, Israel has already escalated, bombing Iranian nuclear sites Thursday, and Iran has fired back with drones and missiles following a deadly strike on an Israeli.