Brent $108, WTI $96 as Hormuz Blockade Halts Flows, Boosting Exxon Mobil
Brent crude held near $108 per barrel and WTI above $96 as the US weighs an Iran peace proposal, while the Strait of Hormuz remains effectively closed by a blockade that has halted daily transits and cut global oil flows by one-fifth. Traders expect normalization in May–June despite tightening supply.
1. Oil Price Movements
Brent crude traded around $108 per barrel after rising 2.8% earlier in the week, while West Texas Intermediate remained above $96, reflecting heightened market sensitivity to Middle East developments.
2. Strait of Hormuz Blockade
A naval blockade of the Strait of Hormuz has cut daily vessel transits to near zero, choking roughly one-fifth of the world’s oil and liquefied natural gas and tightening physical supply balances.
3. US-Iran Proposal Deliberations
US officials met to consider an Iranian peace proposal that calls for lifting the blockade, establishing a legal transit framework and security assurances, but maintained red lines on nuclear enrichment and weaponization.
4. Supply Outlook
Traders anticipate that normalized flows could resume in May and June, but warn that each day of reduced transit intensifies supply constraints and increases the risk of sharper price spikes.