NEW DELHI: Global oil prices have surged back toward the $100-per-barrel mark as tensions in the Strait of Hormuz continue to disrupt supply, despite a temporary ceasefire between the United States and Iran.
Brent crude and U.S. benchmark WTI have both climbed sharply in recent days, reflecting growing market concerns that the ceasefire has failed to restore normal oil flows through the critical maritime chokepoint.
The Strait of Hormuz—through which nearly 20% of the world’s oil supply passes—remains effectively restricted, with only limited vessel movement reported. Hundreds of oil tankers are stranded, and major shipping companies are hesitant to resume operations due to security risks and unclear transit conditions.
Despite the ceasefire agreement, Iran continues to maintain tight control over the waterway, with reports suggesting restrictions, coordination requirements, and even potential transit fees for vessels. This has raised serious concerns over the durability of the truce and the future of global energy supply chains.
The situation has created extreme volatility in global markets. Oil prices initially dropped following the ceasefire announcement but quickly rebounded as optimism faded and supply disruptions persisted. Analysts warn that if the crisis continues, crude prices could rise even further in the coming months.
The standoff has also triggered geopolitical tensions, with the U.S. warning Iran to fully reopen the strait, signalling that failure to do so could escalate the situation again. Meanwhile, diplomatic efforts are ongoing, but uncertainty continues to weigh heavily on global trade and energy security.
