Crude Hits $100 as Iran Blocks Hormuz Strait, Threatens Fuel Supply

Key Details Brent crude traded near $100 a barrel this week after experiencing record price volatility, with Brent jumping 9.2% in a single session before paring gains. Iran's new supreme leader pledged to keep the Strait of Hormuz closed, while President Trump issued fresh warnings. The U.S. issued its second temporary waiver allowing Russian oil purchases to help stabilize markets. Why It Matters The near-halt to shipping through Hormuz has choked off crude, natural gas, and diesel shipments to global customers. Jet fuel is now trading above $200 a barrel in Europe, signaling severe impacts on refined products. Ship attacks this week are further deterring vessels from attempting passage. Market Impact The International Energy Agency called this the largest supply disruption in global oil market history. IEA members released emergency reserves to cool prices, but analysts warn this relief will only be temporary. Iran has begun laying mines in the strait, making conditions even more dangerous for commercial shipping. Diplomacy Efforts European countries including France and Italy have opened negotiations with Tehran to secure safe passage for their vessels. However, geopolitical tensions remain high as the U.S. maintains pressure on the Iranian regime over energy market stability concerns.