Oil Prices Surge Amid Ongoing Strait of Hormuz Disruptions

Oil prices have surged to their highest levels in over a week due to concerns that supply disruptions in the Middle East will persist. Brent futures rose by US$1.19, or 1.4%, to settle at US$88.91 a barrel, while US West Texas Intermediate (WTI) crude rose US$1.07, or 1.3%, to settle at US$83.20. These prices represent the highest closes for both crude benchmarks since July 31.

The Strait of Hormuz has been closed since February 28, when Iran's conflict began, and about 20% of global oil supply passed through this vital waterway before it was shut down. The newly appointed secretary of Iran's Supreme National Security Council, Mohsen Rezaei, stated that the strait will remain closed as long as the US does not change its behavior and accept Iran's conditions to end the war.