Oil Tops $114 as Hormuz Ships Transit Falls by 95%
Reflecting an uncertain outlook, oil prices rose on Wednesday, driven by expectations that ongoing uncertainty in the Strait of Hormuz could further tighten global supply.
Brent crude futures, the international pricing benchmark, advanced 3.3% to settle at $114.93 per barrel. Meanwhile, U.S. West Texas Intermediate crude futures gained 3.8% to close at $103.65 per barrel.
The United Nations said ship transits through the Strait of Hormuz have fallen by 95.3% since the start of the US-Israel and Iran war due to restrictions in the waterway.
US President Donald Trump claimed that the Iranian administration had “requested” that Washington lift the blockade in the Strait. In a post on social media, Trump also alleged that Tehran had informed him that “the system in Iran is on the verge of collapse.”
As tensions in the Strait of Hormuz continue, 52 Iranian vessels were reported to have crossed the US blockade line within the past 72 hours.
The Strait’s closure to maritime traffic for more than eight weeks has heightened supply concerns in the markets and strengthened expectations that the crisis could be prolonged, supporting the upward movement in prices.
Ongoing uncertainty in US-Iran talks is also contributing to the rise in prices. US-based news outlet Axios reported that there is no near-term prospect for the war to come to an end, which began with US and Israeli attacks on Iran.
In its report, Axios said the US/Israel-Iran war had entered a phase resembling the “Cold War era.” Describing the situation as a “deadlock,” the report noted that no end to the conflict was in sight.
The Iranian army spokesperson also said that despite the ceasefire, war conditions still apply for Tehran as they do not trust the US.
The UAE announces its exit from OPEC and OPEC+ effective May 1st, as tensions around the Strait of Hormuz continue to shape global energy market dynamics alongside central bank outlooks.
The UAE’s decision reflects a strategic shift that has been building over the past decade, where positioning, capacity expansion, and economic recovery from one of the largest energy shocks in modern history have become key priorities.
This comes as the US–Iran conflict moves closer to potential resolution, while the UAE has indicated it will continue to respect broader global production levels.
The UAE’s exit marks a notable step in the global energy landscape and may open the door for other producers to consider a more independent approach as economies navigate the ongoing energy shock linked to the Strait of Hormuz. Exchange Rate Falls to N1,380/$ as Naira Sold Off
