Oil Prices Near $100 as Iran Signals Strait of Hormuz Will Stay Closed

Global oil markets surged after Iran’s newly installed supreme leader indicated that the Strait of Hormuz would remain effectively closed, framing the move as leverage against the United States and Israel. The statement intensified fears of a prolonged disruption to global energy supplies, pushing Brent crude prices close to the $100 per barrel level in international trading.

Energy markets have been highly volatile as military tensions between Iran and the U.S.-Israel alliance continue to escalate. Attacks on shipping and energy infrastructure around the Persian Gulf have significantly reduced tanker traffic through the Strait of Hormuz, one of the world’s most critical energy transit routes.

Roughly 20% of global oil and liquefied natural gas shipments normally pass through the Strait of Hormuz, making any disruption a major concern for energy traders and policymakers. Analysts warn that if the passage remains closed for an extended period, crude prices could surge significantly higher, with some projections pointing to levels as high as $150 per barrel.

The spike in oil prices has also triggered turbulence across global financial markets. Rising energy costs risk fueling inflation and weighing on economic growth, prompting investors to reassess risk exposure as geopolitical tensions in the Middle East continue to dominate the outlook for commodities and global markets.