Brent Crude Surges to $98 Amid Geopolitical Tensions

The global oil market is experiencing heightened volatility as Brent crude prices surged to $98.38 per barrel, reflecting supply concerns and geopolitical tensions, particularly involving the United States and Iran. The West Texas Intermediate also rose to $89.58 per barrel.

Disruptions in supply chains and strong demand signals are contributing to this price increase, with the Strait of Hormuz, a critical oil supply corridor, facing ongoing disruptions due to U.S.-led blockades against Iranian-linked ships. Iranian Parliament Speaker Mohammad Bagher Ghalibaf rejected negotiations under military pressure, while Foreign Minister Abba Araghchi echoed concerns about U.S. actions undermining diplomatic efforts.

The International Energy Agency (IEA) reported a significant decline in global oil supply, dropping to 97 million barrels per day in March, attributed to attacks on energy infrastructure in the Middle East. The IEA estimates that recovering oil output to pre-war levels could take up to two years, further complicating the situation for oil prices and supply stability.