Brent Crushes Over $100, Hormuz Congestion and Trump's Message Sparks Oil Rally
Oil prices surged again, taking Brent near $100 a barrel as shipping chaos stemming from the Iran war intensified, while U.S. President Donald Trump reiterated his priority was stopping Iran from acquiring a nuclear weapon—not holding back oil prices. Brent briefly surged more than 10% to $101.59 before paring gains and then rebounding.
Trump wrote in Truth Social that the U.S. “makes a lot of money” when oil prices rise and called the Iranian nuclear issue “far more important” to him. The market briefly paused after reports that the U.S. government was preparing a 30-day waiver for the Jones Act to allow foreign tankers to help supply East Coast refineries from the Gulf Coast and elsewhere, in an effort to stem the price surge.
However, supply pressures remain dominant. Iran’s new supreme leader said the Strait of Hormuz should remain closed, while U.S. Energy Secretary Chris Wright said military escorts would likely begin at the end of the month. Iran has escalated attacks on ships and ports in the Persian Gulf, widening the threat to energy supply chains and overshadowing the impact of the release of agreed emergency reserves.
The International Energy Agency warned that the current supply disruption is the largest in the history of the global oil market. The effective closure of Hormuz—the passageway for about a fifth of global oil flows—forced Gulf producers to cut output, while natural gas and products like diesel surged. In Asia, Chinese refineries began canceling fuel export cargoes, after being asked to stop signing new contracts.
Goldman Sachs warned that oil prices could surpass their 2008 peak if Hormuz flows remain depressed through March, while market participants assessed that the release of reserves was not worth the disruption of around 20 million barrels per day from the strait closure. In a price update, April WTI rose 10% to US$96.07 and May Brent rose 9.7% to US$100.88.
Source: Newsmaker.id
