Oil prices rose Sunday after an Iranian official warned that the Strait of Hormuz will “under no circumstances” return to its previous state.
Oil prices climbed sharply in early Asian trade on Monday, as the U.S. Navy intercepted an Iranian vessel it accused of attempting to break its blockade. The seizure reignited fears of a major escalation in the conflict and a prolonged disruption in the Strait of Hormuz.
The U.S. Energy Information Administration (EIA) increased its 2026 Brent oil price projection in its latest short term energy outlook (STEO), which was published on April 7.
Oil has sharply repriced lower into the mid-$90s, Naeem Aslam, CIO at Zaye Capital Markets, said in a statement sent to Rigzone on Wednesday.
Oil and natural gas prices dropped sharply after the U.S. and Iran agreed to a two-week ceasefire aimed at halting the six-week conflict, though uncertainty persists over the timing of resumed flows through the Strait of Hormuz.
The premiums for U.S. West Texas Intermediate crude have soared in the spot market to a record high of between $30 and $40 per barrel above key regional benchmarks as Asia and Europe scramble for supply amid the de facto closure of the Strait of Hormuz.
Oil edged lower as traders deciphered contradictory messaging surrounding a diplomatic push by the US to end the war with Iran.
Oil prices fell sharply in early asian trade on Wednesday, with both major benchmarks dropping more than 5% as traders reacted to signs of potential de-escalation in the Middle East conflict as well as a crude inventory build in the U.S.
Oil prices fell sharply, posting one of the largest intraday swings on record, after President Donald Trump said discussions to end the Iran conflict were underway, though Tehran denied any talks.
Brent crude is seen averaging $85 per barrel this year, and West Texas Intermediate could see an average price of $79, Goldman Sachs commodity analysts said in a note released Sunday. They added that the supply loss from the crisis is going to peak at 17 million barrels daily.