Hormuz Closure Sends Brent Crude Soaring Above $100

A prolonged closure of the Strait of Hormuz has pushed Brent crude prices above $100 a barrel, affecting nearly 20 million barrels of oil per day.

The Strait of Hormuz is a critical transit route for global oil trade, handling about 27% of seaborne oil and roughly a fifth of global petroleum liquids consumption.

Iranian forces have declared the Strait of Hormuz closed, with shore-based anti-ship cruise and ballistic missiles positioned on three disputed Gulf islands.

The closure has led to a significant shortage in physical crude markets, with cargoes trading at significantly higher prices than futures contracts.

Burghley Capital argues that institutional portfolios exposed to energy markets under exceptional strain should prioritize disciplined forward positioning over reactive hedging.