22nd April 2026
Iran’s Revolutionary Guard has attacked and seized multiple commercial ships in the Strait of Hormuz, one of the world’s most critical oil chokepoints. This has pushed Brent crude back above $100 a barrel, with some trading sessions seeing prices around $101–$102.
1. US benchmark WTI crude has also risen to around $92–$93.
These increases reflect immediate fears that oil supply from the Persian Gulf—normally around 20 million barrels per day—could be severely restricted.
2. The Strait of Hormuz is effectively disrupted
Reports indicate that tanker traffic has slowed dramatically, with some vessels attacked and others ordered to halt. Analysts estimate that 10–15 million barrels per day of supply are currently disrupted due to the conflict.
This chokepoint normally carries one‑fifth of global seaborne oil, so any interruption has an outsized impact on global prices.
3. Market reaction: volatility and fear pricing
Oil markets are extremely sensitive to Middle East tensions. Recent attacks have caused:
4–7% daily price spikes in some sessions.
Investors shifting into “safe haven” assets like gold and the US dollar.
Airlines and shipping companies reassessing routes due to rising fuel and insurance costs.
Analysts warn that unless tensions ease, prices could remain elevated for months.
4. Risk of further escalation
The situation remains unstable:
Iran has fired on multiple tankers and seized ships.
The US has responded militarily in some incidents.
Negotiations between the US and Iran have stalled.
This uncertainty is keeping oil markets on edge.
What this means for consumers and businesses
Short‑term
Expect higher fuel prices, especially diesel and aviation fuel. Some regions are already seeing supply tightness.
Medium‑term
If the Strait of Hormuz remains partially closed or risky:
Brent crude could stay above $90–$100 for an extended period.
European and Asian energy markets may face gas and LNG price spikes.