Oil Nears $110 on Hormuz Threats, Morgan Stanley Warns of Supply Strain
Brent crude neared $110 a barrel and WTI topped $106 after US threats to close the Strait of Hormuz raised supply concerns, prompting Morgan Stanley to warn that extended closure could strain Persian Gulf exports. A lapsed waiver on Russian crude and weekend Gulf drone attacks further tightened export flows.
1. Oil Price Surge
Brent crude rose near $110 a barrel and West Texas Intermediate topped $106, climbing for a third straight day as US warnings of a potential Strait of Hormuz closure spurred concerns over Persian Gulf supply disruptions.
2. Morgan Stanley Warning
Analysts at Morgan Stanley cautioned that an extended closure of the Strait of Hormuz could significantly strain crude exports from Gulf producers, noting that the market’s supply buffers may erode if shipping through the waterway remains limited into June.
3. Additional Supply Pressures
The US allowed a waiver on Russian crude sales to lapse this month, removing a source of supply relief, while weekend drone strikes on energy facilities in the Persian Gulf highlighted ongoing security risks to export infrastructure.