Oil tops $110 amid Strait risk
Brent crude climbed past $110 a barrel this week as disruptions around the Strait of Hormuz and regional tensions pushed supply-risk premia higher — Brent hit $111.41 on March 27. The spike is already feeding through to market volatility and inflation concerns for energy-dependent sectors. (el-balad.com) (fox32chicago.com)
Analysts and market trackers estimate roughly 8 million barrels per day of Persian Gulf seaborne crude is effectively offline as transits through the Strait of Hormuz have stalled, forcing immediate tightening of prompt physical markets. (roic.ai) Major war‑risk underwriters have suspended cover for Gulf transits and hundreds of tankers have been held, delayed or diverted, a move Maritime News says has effectively halted ordinary commercial tanker traffic through Hormuz. (maritimenews.com) Longer voyages around the Cape of Good Hope and elevated freight pushed the Brent–WTI spread to multiyear highs as seaborne differentials widened and shipping costs jumped. (ainvest.com) Goldman Sachs has already raised its 2026 Brent average to $85 a barrel from $77, calling the sustained disruption in Hormuz the largest‑ever supply shock to its models. (bloomberg.com) Macquarie has flagged a material probability of much higher outcomes — warning of a path to $200/bbl if the conflict extends through June — while options volumes show traders piling into $150+ calls. (businesstoday.in) Market reports from the IEA and OPEC show forward curves moving into backwardation and note inventory draws and demand revisions that are reinforcing a near‑term risk premium and elevated price volatility. (iea.org)
