Crude Oil Trades Above $100 As Hormuz Disruption Tightens Global Supply

Global oil markets saw a sharp upward bias this week as crude prices strengthened amid escalating geopolitical tensions, tightening supply conditions, and increased speculative trading activity. Benchmark crude contracts, including West Texas Intermediate (WTI) and Brent, both climbed above the psychologically significant $100-per-barrel mark during Monday’s trading session.

Market sentiment was heavily influenced by reports of heightened tensions surrounding the Strait of Hormuz, a critical global shipping route for oil exports. According to market commentary from ANZ Research, concerns intensified after remarks attributed to U.S. President Donald Trump regarding restrictive naval measures in the region following stalled diplomatic engagement between U.S. and Iranian officials. Analysts noted that any disruption in this corridor could significantly constrain exports from major Persian Gulf producers, including Iran, amplifying supply risks already priced into the market.

The U.S. Central Command (CENTCOM) stated that maritime movement involving Iranian ports would face enforcement measures beginning April 13, a development that further fueled volatility in energy markets. Traders reacted swiftly, pushing both Brent and WTI futures higher as the perceived risk of supply disruption increased. Market experts suggested that even the threat of restricted shipping lanes has been sufficient to sustain a strong risk premium in crude pricing.

Also Read: NSE To Launch Dated Brent Crude Oil Futures From April 13

Analysts also pointed to positioning data as a supporting factor behind the rally. Commodity Futures Trading Commission (CFTC) figures showed money managers increased net long positions in NYMEX crude by more than 7,000 lots in the week ending April 7, indicating growing bullish sentiment among investors. At the same time, U.S. drilling activity remained unchanged, with Baker Hughes reporting 411 active rigs, suggesting no immediate expansion in supply output to offset rising demand expectations.

Technical analysts outlined key trading ranges for the week, with WTI support seen between $94 and $90 per barrel and resistance near $118 to $120. On India’s Multi Commodity Exchange (MCX), crude futures were supported in the ₹8,000–₹8,500 range, with resistance levels up to ₹11,500, reflecting heightened volatility across both global and domestic benchmarks. Additional market drivers this week include upcoming OPEC and International Energy Agency reports, U.S. inflation data, China’s GDP release, and Federal Reserve commentary.

As of Monday afternoon trading, WTI crude was reported near $103.69 per barrel, while Brent futures surged close to $101.80. Analysts noted that while previous optimism around diplomatic negotiations had briefly eased prices, renewed geopolitical uncertainty has quickly reintroduced upward pressure, keeping oil markets highly sensitive to developments in the Strait of Hormuz and broader Middle East tensions.

Also Read: WTI Crosses $102, Brent Hits $104 as US Strikes on Iran's Kharg Island Rattle Oil Markets