All articles tagged with #oil prices
U.S. officials say Iran laid mines in the Strait of Hormuz and cannot quickly locate or demine them, keeping the waterway largely closed, hindering traffic and complicating talks to end the war, while contributing to spikes in global oil prices and an energy crisis.
U.S. rig count fell to 545 this week (down 38 from a year ago) with oil rigs at 411 and gas rigs at 127; Permian remained the largest basin at 242 rigs; weekly crude output slipped to about 13.6 million barrels per day. Brent and WTI hovered near the high-$90s per barrel, signaling higher prices even as drillers scale back activity.
Even after the U.S.-Iran ceasefire, the Strait of Hormuz remains largely closed and traffic is tightly controlled by Iran’s IRGC, keeping the global oil chokepoint constrained and prices near $100 a barrel. Analysts warn that without a sustained reopening, the energy shock could deepen and slow global growth, with Brent likely to average above $100 this year as shippers tread carefully and recovery could take months.
Traffic through the Strait of Hormuz remains well below normal despite a U.S.-Iran ceasefire, with only about 15 ships entering or leaving since April 8, far short of the pre-crisis average. Iran’s IRGC has ordered vessels to pass through Iranian waters near Larak Island to avoid mines, creating restricted zones and raising risk for ships not authorized by Tehran. Hundreds of tankers are stuck in the Gulf, contributing to a surge in oil prices and a disruption of global supply; Western leaders oppose tolls on strait passage while the ceasefire condition called for reopening the strait.
ACI Europe warns that a prolonged disruption through the Strait of Hormuz could trigger a systemic EU jet-fuel shortage within three weeks, as about 30% of Europe’s jet fuel imports come from the Gulf and refining capacity is limited. Seven Italian airports have already seen fuel supply tightness, and airlines are passing higher costs to customers amid rising crude prices and a heavy reliance on imports ahead of peak summer travel.
Amid Iran's actions and a fragile ceasefire, US allies in Asia are hedging energy security by buying more from Iran, Russia and China as oil prices spike, signaling a shift away from a solely US-backed energy umbrella and foreshadowing broader realignments in the region.
Investors kept a wary eye on a fragile U.S.–Iran ceasefire as stock futures stayed muted, while oil rose on Hormuz bottlenecks and traders awaited the March CPI data. Gold eased amid a firmer dollar and inflation concerns, with economists expecting the headline CPI to rise on higher energy prices and core inflation to advance more moderately, likely shaping the Fed’s near-term stance.
US gas prices around $4.15–$4.17 per gallon aren’t expected to fall back to prewar $3 even if Iran’s ceasefire holds. Uncertainty over reopening the Strait of Hormuz, plus ongoing Gulf production cuts, possible tolls, higher shipping insurance, and risk premiums in oil futures—all compounded by global market dynamics—mean relief to below $3 is unlikely this year, with some analysts suggesting it may not happen until next year.
Oil prices climbed toward $100 a barrel as renewed Middle East tensions and doubts about Iran’s ceasefire raise supply fears, with WTI near $99 and Brent around $97. Saudi energy disruptions cut capacity by about 600,000 barrels per day and hit ~700,000 bpd through the East-West pipeline, while limited tanker traffic through the Strait of Hormuz and ongoing regional attacks keep markets on edge until flows resume.
Stock futures were little changed on Friday as traders weigh a fragile two-week U.S.–Iran ceasefire, following a Thursday rally that lifted the S&P 500, Nasdaq, and Dow to weekly gains. Oil prices fluctuated near peaks as geopolitical tensions persist, while investors await March CPI and other data ahead of earnings season. The week has seen broad gains across major indices, with markets in Asia-Pacific also higher on relief over the ceasefire news.
Oil prices rose as attacks on Saudi energy facilities cut output by about 600,000 barrels per day and tanker traffic through the Strait of Hormuz remained near standstill; Brent traded around $96.50 and WTI around $98 as markets weigh a fragile US‑Iran ceasefire and ongoing supply disruptions, with the week’s losses already at about 11% and refining capacity offline.
President Trump urged Iran to stop charging tolls for tankers crossing the Strait of Hormuz, while Iran’s supreme leader vowed to control the waterway, signaling heightened risk to global oil shipments. Iran’s proposed toll—about $1 per barrel paid in cryptocurrency—along with political leverage could restrict passage, leaving hundreds of tankers waiting and nearly 20,000 mariners stranded as oil prices approach $100 per barrel amid a fragile ceasefire and upcoming peace talks in Islamabad.
Oil prices climbed toward $100 a barrel—WTI around $101.54 and Brent about $99.32—driven by Strait of Hormuz disruptions and doubts about a U.S.-Iran ceasefire, while stock markets paused after a rally as investors weigh geopolitical risk, inflation readings, and potential Fed policy moves.
IMF chief Kristalina Georgieva says the Iran war will permanently scar global growth, pulling down forecasts due to energy disruptions, damaged infrastructure, and lost confidence—even if a durable peace is reached—striking poorer and oil-importing nations hardest and urging targeted support and prudent fiscal/monetary policy.
President Donald Trump said the United States will keep ships, aircraft and troops deployed in and around Iran until Tehran fully complies with a 'real agreement,' warning that any breach would trigger a larger military response. The comments followed a two-week ceasefire brokered by Pakistan amid ongoing hostilities, with Trump also labeling Iran’s proposed 10-point plan as fake and oil prices rising as markets priced in continued risk in the Hormuz Strait.