Crude Oil Jumps 1%+ as Hormuz Strait Closure Sparks Supply Fears

Tensions in the Middle East propelled crude oil prices upward by more than 1% on Friday, reversing recent losses amid Iran's blockade of the Strait of Hormuz and strikes on Saudi oil facilities. Even with a tentative US-Iran ceasefire in place for two weeks, the specter of disrupted shipments has markets rattled. Brent crude, the global benchmark, advanced 1.13% to $97.01 a barrel. WTI crude saw a steeper rise of 1.39%, reaching $99.24 per barrel. Prices had tumbled nearly 20% on Wednesday, falling under $100 – a level they hovered around since February 28. Domestically, India's MCX saw April crude futures climb 2.43% to 9,150 rupees per barrel, up 217 rupees in morning trade. The rally unfolds against a backdrop of ceasefire skepticism, Israel's continued operations in Lebanon, and Hormuz disruptions that threaten one-fifth of the world's oil flow. Major shipping companies are pausing operations, awaiting firm ceasefire assurances. Thursday's traffic through the strait dropped below 10% of usual volumes, hammering global supply lines and inflating costs. President Trump warned of potential large-scale US military response if the ceasefire falters, while stressing low odds of escalation. He firmly opposed Iranian nuclear ambitions and pledged military readiness to safeguard Hormuz navigation. According to the ADB, oil prices may stay high short-term, but de-escalation could foster stability. As stakeholders brace for uncertainty, this volatile mix of conflict and commerce underscores the fragility of global energy markets.