Iran pressure lifts oil above $100

U.S. crude briefly traded above $100 on April 28 as traders reacted to reports that President Donald Trump was dissatisfied with Iran’s proposal to reopen the Strait of Hormuz. (cnbc.com) West Texas Intermediate settled at $99.93 a barrel after rising more than 3% and trading above $100 intraday for the first time since April 13. Brent, the global benchmark, settled at $111.26. (cnbc.com) (globalbankingandfinance.com) The immediate trigger was a deadlock over Hormuz, the narrow waterway between Iran and Oman that carries a huge share of seaborne oil. Iran offered to reopen the route if the United States lifted its naval blockade, but the proposal did not satisfy Washington. (cnbc.com) Secretary of State Marco Rubio said on April 27 that Iran could not be allowed to decide who uses an international waterway or what they pay to pass. CNBC reported tanker traffic remained effectively shut, cutting off most Gulf oil exports. (cnbc.com) The Strait of Hormuz matters because it is the world’s biggest oil chokepoint. The U.S. Energy Information Administration said 20.9 million barrels a day moved through it in the first half of 2025, about 20% of global petroleum liquids consumption. (eia.gov) That helps explain why even bearish news struggled to push prices down. The United Arab Emirates said on April 28 that it will exit OPEC and OPEC+ effective May 1, a move that would normally signal more supply ahead. (wam.ae) (globalbankingandfinance.com) John Kilduff of Again Capital told Reuters the UAE could quickly add 1 million to 1.5 million barrels a day. But he said a closed Hormuz means “there’s nowhere for that supply to go,” leaving prices on a slow climb. (globalbankingandfinance.com) Andy Lipow of Lipow Oil Associates told CNBC that roughly 20 million barrels a day of crude, fuels and petrochemicals are affected, and that even a ceasefire would not normalize the market quickly. He estimated four to six months to clear mines, ease tanker congestion and restart flows. (cnbc.com) For central banks and companies, the transmission channel is simple: higher crude raises the cost of gasoline, diesel, jet fuel and petrochemical feedstocks. On April 28, the market was trading that supply risk, not a clean resolution. (cnbc.com)