Hormuz Disruption Sends Energy Prices Soaring Above $102
Energy prices surged on Thursday as the US-Iran war continued to escalate, with Brent crude rising above $102 per barrel and European natural gas prices reaching their highest level since late 2022.
The Strait of Hormuz, a critical maritime route for crude exports from major Gulf producers, has been disrupted since Iran announced its closure on August 12. The blockade has significantly reduced vessel traffic through the waterway, which handles roughly one-fifth of global oil shipments.
US President Donald Trump linked the current high energy prices to Washington's efforts to prevent Iran from obtaining a nuclear weapon. He stated that the market volatility is directly related to the administration's strategic objectives.
The EU Gas Index surged 2.4% on Thursday, exceeding €81 ($94.2) as traders priced in supply risks from the ongoing Gulf conflict. Brent futures traded at $102.3 per barrel, up 1.1% from the previous close, while West Texas Intermediate advanced 1.5% to $97.5.