Oil Nears 119 as Hormuz Disruption Roils Global Markets
Oil Nears 119 as Hormuz Disruption Roils Global Markets
Brent climbs toward $119 per barrel as Iran blocks the Strait of Hormuz, fueling petrol-price spikes and energy-saving measures worldwide.
Brent crude has climbed toward $119 per barrel, its highest level since the early days of the US-Israel conflict with Iran, as Tehran appears to have effectively blocked the Strait of Hormuz, a vital route for world oil shipments. The move has traders bracing for tighter supply and broader price volatility across markets.
Across the globe, pump prices are reacting: in the United States, petrol prices topped $4 a gallon for the first time in nearly four years, while in Britain petrol has reached about 152.8 pence per litre and diesel around 182.77 pence, the highest in years. The surge is feeding through to household bills, with energy-rates and fuel costs in many economies expected to rise in the coming months.
Attention is turning to supply chains as the last Middle East jet fuel shipment bound for the UK is expected to arrive this week, underscoring how closely tied the market is to regional stability and aviation fuel markets.
Governments are already responding in varied ways: Australia is offering free bus travel to ease the burden on commuters, while Egypt has urged shops, restaurants, and cafes to close early to curb energy use. These steps reflect a broader push to blunt the economic impact of rising oil and energy costs while the market weighs the potential for further disruptions.
Analysts say prices could stabilise if the pace of new disruptions slows or if markets anticipate tighter supply easing, but diesel prices may remain elevated as long as global oil remains stressed. With the Strait of Hormuz a chokepoint at the heart of the disruption, many observers expect continued volatility in both crude and refined-product markets as the situation evolves.
